10-K – 2025-12-18 – avgo-20251102.htm

ITEM 1C. CYBERSECURITY
Risk Management and Strategy
Our cybersecurity risk management program is intended to protect the confidentiality, integrity and availability of our critical systems and information. At any given time, we face cybersecurity risks and threats, some of which are not fully mitigated, and we routinely address newly discovered vulnerabilities. We continuously work to enhance our information security program and risk management efforts. Our program includes processes for identifying, assessing and managing material risks from cybersecurity threats that are guided by the National Institute of Standards & Technology’s Cybersecurity Framework, the ISO 27001 international standard for information security and other applicable industry benchmarks.
Our cybersecurity risk management program is integrated into our overall enterprise risk management system and processes, and includes:
• a team of professionals within our Global Technology Organization who are responsible for identifying and mitigating cybersecurity risks and managing our security controls and response activities;
• risk assessment processes designed to identify cybersecurity risks to our critical systems, information, products, services and our broader enterprise IT environment;
• an annual tabletop exercise to simulate a response to a cybersecurity incident; and
• mandatory training annually and upon hiring for all employees and contractors on data privacy and cybersecurity topics.
When appropriate, we utilize independent, external service providers to assess, test or otherwise assist with certain aspects of our cybersecurity risk management program and related processes, including for penetration testing, threat
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monitoring and incident response. We also employ a vendor risk assessment process to mitigate risks presented by certain third-party service providers, and we require such providers to manage their cybersecurity risks in conformance to industry standards, notify us of relevant cybersecurity events and satisfy additional contractual requirements.
As of the date of this Annual Report on Form 10-K, we are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition . However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced undetected cybersecurity incidents. For additional information about our cybersecurity-related risks, see Item 1A. Risk Factors in this Annual Report on Form 10-K.
Cybersecurity Governance
Our Board of Directors is actively involved in overseeing our cybersecurity risk management and shares oversight responsibility and processes with the Audit Committee of the Board of Directors (the “Audit Committee”).
Our management, including our Chief Information Officer (“CIO”), in consultation with our Chief Information Security Officer (“CISO”), reviews with the Audit Committee quarterly, or more frequently as determined to be necessary or advisable, regarding our cybersecurity security policies, practices and protective measures, threat intelligence, cybersecurity incidents and related risks. At least quarterly, our CIO also provides the Audit Committee with an update on our enterprise security program that includes procedures and policies for testing vulnerabilities, responding to cybersecurity threats, and training and evaluating our employees. The Audit Committee and management also update our Board of Directors at least quarterly on our cybersecurity performance and risk profile and the effectiveness of our cybersecurity processes. We also have protocols in place for escalating certain cybersecurity incidents to the Audit Committee and the Board of Directors.
Our management, including our CIO and CISO, are responsible for assessing and managing material risks from cybersecurity threats. Our CIO oversees our Global Technology Organization that has primary responsibility for our overall cybersecurity risk management program . Our CIO, who reports to our Chief Executive Officer, has over 20 years of experience managing global IT operations, including strategy, applications, infrastructure, information security, support and execution. Our CISO, who reports to the CIO, has approximately 30 years of cybersecurity experience assessing and managing cybersecurity programs.
Our management is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, which may include, among other things, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in our IT environment.

ITEM 2. PROPERTIES
We are headquartered in Palo Alto, California and our primary warehouse is located in Malaysia. We conduct our administration, manufacturing, research and development, sales and marketing in both owned and leased facilities. We believe that our owned and leased facilities are adequate for our present operations. We do not identify or allocate assets by operating segment.
As of November 2, 2025, our owned and leased facilities in excess of 100,000 square feet consisted of:
(In square feet) United States Other Countries Total
Owned facilities (a)
2,919,706  928,888  3,848,594 
Leased facilities (b)
735,706  1,881,685  2,617,391 
Total facilities 3,655,412  2,810,573  6,465,985 
_______________
(a) Includes 318,000 square feet and 153,000 square feet of property in Malaysia subject to a 60-year land lease with the state authority expiring in May 2051 and March 2077, respectively, subject to renewal at our option. Also includes 561,000 square feet of property in Palo Alto, California subject to a 40-year land lease with the Stanford University Board of Trustees expiring in May 2046 that does not have a renewal option.

(b) Building leases expire on varying dates through February 2046 and generally include renewals at our option.

ITEM 3.     LEGAL PROCEEDINGS
The information set forth under Note 14. “Commitments and Contingencies” included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference. For an additional discussion of certain risks associated with legal proceedings, see “Risk Factors” above.
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ITEM 4.     MINE SAFETY DISCLOSURES
None.
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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Broadcom common stock is listed on The Nasdaq Global Select Market under the symbol “AVGO”.
Holders
As of November 28, 2025, there were 2,061 holders of record of our common stock. A substantially greater number of stockholders are “street name” or beneficial holders, whose shares are held of record by banks, brokers and other financial institutions.
Issuer Purchases of Equity Securities
In April 2025, our Board of Directors authorized a stock repurchase program to repurchase up to $10 billion of our common stock from time to time through December 31, 2025, which was extended to December 31, 2026 subsequent to fiscal year 2025. No shares were repurchased during the fiscal quarter ended November 2, 2025. As of November 2, 2025, $7,550 million of the authorized amount remained available for repurchases.
Repurchases under this stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.

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Stock Performance Graph
The following graph shows a comparison of cumulative total return on our common stock, the Standard & Poor’s 500 Stock Index (the “S&P 500 Index”) and the NASDAQ 100 Index for the five fiscal years ended November 2, 2025. The total return graph and table assume that $100 was invested on October 30, 2020 (the last trading day of our fiscal year 2020) in each of Broadcom Inc. common stock, the S&P 500 Index and the NASDAQ 100 Index and assume that all dividends are reinvested. Indexes are calculated on a month-end basis.
The comparisons in the graph below are based on historical data and are not indicative of, or intended to forecast, the possible future performance of our common stock.

Comparison of Five Year Cumulative Total Return
Among Broadcom Inc., the S&P 500 Index and the NASDAQ 100 Index

November 1, 2020 October 31, 2021 October 30, 2022 October 29,
2023 November 3,
2024 November 2, 2025
Broadcom Inc. $ 100.00  $ 156.83  $ 143.70  $ 261.58  $ 535.10  $ 1,182.35 
S&P 500 Index $ 100.00  $ 142.91  $ 122.94  $ 131.94  $ 186.28  $ 225.31 
NASDAQ 100 Index $ 100.00  $ 144.43  $ 106.05  $ 131.38  $ 187.18  $ 243.37 

The graph and the table above shall not be deemed “filed” with the SEC for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by us with the SEC, regardless of any general incorporation language in such filing.

ITEM 6. [RESERVED]
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ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and notes thereto, which appear elsewhere in this Annual Report on Form 10-K. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the caption “Risk Factors” or in other parts of this Annual Report on Form 10-K.

The following section generally discusses our financial condition and results of operations for our fiscal year ended November 2, 2025 (“fiscal year 2025”) compared to our fiscal year ended November 3, 2024 (“fiscal year 2024”). A discussion regarding our financial condition and results of operations for fiscal year 2024 compared to our fiscal year ended October 29, 2023 can be found in Part II, Item 7 of our Annual Report on Form 10-K for fiscal year 2024, filed with the Securities and Exchange Commission (the “SEC”) on December 20, 2024.
Overview
We are a global technology leader that designs, develops and supplies a broad range of semiconductor and semiconductor-based solutions and infrastructure software solutions. Our semiconductor and semiconductor-based solutions include a broad portfolio of complex digital and mixed signal devices based on silicon wafers with complementary metal oxide semiconductor transistors, III-V based devices, network interface cards and other modules, switches, subsystems and, in some cases, racks. Our solutions are used in a wide array of environments, end products and applications, such as enterprise and artificial intelligence (“AI”) data centers, servers and networking and connectivity equipment, as well as storage systems, home connectivity devices, set-top boxes, broadband access, telecommunication equipment, wireless devices and base stations, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions help enterprises simplify their information technology environments. Our customers rely on our infrastructure and security software solutions to modernize, optimize, and secure the most complex private cloud, hybrid cloud and edge environments. This enables scalability, agility, automation, insights, resiliency and security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.
We have two reportable segments: semiconductor solutions and infrastructure software. Our semiconductor solutions segment includes all of our semiconductor-based product lines and intellectual property (“IP”) licensing. Our infrastructure software segment includes our private cloud, mainframe software, cybersecurity and enterprise software portfolios, and our FC SAN business.
Our strategy is focused on sustained technology leadership and developing category-leading solutions to deliver a comprehensive suite of innovative infrastructure technology products to the world’s leading business and government customers. We seek to achieve this through extensive internal research and development, as well as strategic acquisitions of businesses and technologies, to ensure our products retain their technology market leadership. This strategy results in a robust business model designed to drive diversified and sustainable operating and financial results.
The demand for our solutions has been affected in the past, and is likely to continue to be affected in the future, by various factors, including the following:
• gain or loss of significant customers;
• general economic and market conditions in the industries and markets in which we compete;
• anticipated or actual demand for AI-related products and solutions;
• our distributors’ product inventory and end-user demand;
• the rate at which our present and future customers and end-users adopt our solutions in our target markets, including our AI-related solutions, and the rate at which our customers' products that include our solutions are accepted in their markets; 
• the shift to cloud-based information technology solutions and services, such as hyperscale computing, which may adversely affect the timing and volume of sales of our solutions for use in traditional enterprise data centers; and
• the timing, rescheduling or cancellation of expected customer orders.
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Fiscal Year Highlights
Highlights during fiscal year 2025 include the following:
• We generated $27,537 million of cash from operations.
• We paid $11,142 million in cash dividends.
• We repurchased $2,450 million of common stock.

Acquisitions and Divestitures
Acquisition of VMware and Divestiture of EUC
On November 22, 2023, we acquired VMware, Inc. (“VMware”) in a cash-and-stock transaction (the “VMware Merger”). The VMware stockholders received approximately $30,788 million in cash and 544 million shares of Broadcom common stock with a fair value of $53,398 million. In addition, we assumed all outstanding VMware restricted stock unit (“RSU”) awards and performance stock unit awards held by continuing employees. The assumed awards were converted into RSU awards for shares of Broadcom common stock. All outstanding RSU awards held by non-employee directors and in-the-money VMware stock options were accelerated and converted into the right to receive cash and shares of Broadcom common stock, in equal parts.
We funded the cash portion of the VMware Merger with the net proceeds from the issuance of the 2023 Term Loans, as defined and discussed in Note 10. “Borrowings” included in Part II, Item 8 of this Annual Report on Form 10-K, as well as cash on hand. We assumed $8,250 million of VMware’s outstanding senior unsecured notes.
On July 1, 2024, we sold VMware’s end-user computing (“EUC”) business to KKR & Co. Inc. for cash consideration of $3.5 billion , after working capital adjustments.
Acquisition of Seagate’s System-on-Chip Operations
On April 23, 2024, we acquired certain assets related to the design, development, and manufacture of System-on-Chip operations of Seagate Technology Holdings plc for $600 million .

Net Revenue
A majority of our net revenue is derived from sales of a broad range of semiconductor and semiconductor-based solutions that are incorporated into electronic products, as well as from modules, switches and subsystems and, in some cases, racks. Net revenue is also generated from the sale of software solutions that enable our customers to plan, develop, deliver, automate, manage, and secure applications across mainframe, distributed, edge, mobile, and private and hybrid cloud platforms.
Our overall net revenue, as well as the percentage of total net revenue generated by sales in our semiconductor solutions and infrastructure software segments, have varied from quarter to quarter, due largely to fluctuations in end-market demand which are discussed in detail in Part I, Item 1A. Risk Factors of this Annual Report on Form 10-K.
Distributors and original equipment manufacturers (“OEMs”), or their contract manufacturers, typically account for the substantial majority of our semiconductor sales. To serve customers around the world, we have strategically developed relationships with large global electronic component distributors, complemented by a number of regional distributors with customer relationships based on their respective product ranges. We have established strong relationships with leading OEM customers across multiple target markets. Our direct sales force focuses on supporting our large OEM customers and has specialized product and service knowledge that enables us to sell specific offerings at key levels throughout a customer’s organization. Certain customers require us to contract with them directly and with specified intermediaries, such as contract manufacturers. Many of our major customer relationships have been in place for many years and are often the result of years of collaborative product development. This has enabled us to build our extensive IP portfolio and develop critical expertise regarding our customers’ requirements, including substantial system-level knowledge. This collaboration has provided us with key insights into our customers' businesses and has enabled us to be more efficient and productive and to better serve our target markets and customers. We recognize revenue upon the delivery of our products to the distributors, which can cause our quarterly net revenue to fluctuate significantly. Such revenue is reduced for estimated returns and distributor allowances.
Our software customers generally consist of large enterprises that have computing environments from multiple vendors and are highly complex. Our private cloud infrastructure suite of solutions is available directly from Broadcom, resellers and distributors, hyperscale cloud providers, value-added OEMs and VMware cloud service provider partners. VMware Cloud Foundation (“VCF”) provides license portability, which enables customers to purchase subscriptions of VCF software and move their VCF environments between on-premises data centers and supported cloud endpoints. We remain focused on strengthening relationships and increasing penetration within our existing core, mainframe, VMware, and Symantec endpoint
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customers and expanding the adoption of our enterprise software offerings with these customers. We believe our enterprise-wide license model will continue to offer our customers reduced complexity, more flexibility and an easier renewal process that will help drive revenue growth.
Costs and Expenses
Cost of products sold.   Cost of products sold consists primarily of the costs for semiconductor wafers and other materials, as well as the costs of assembling and testing those products and materials. Such costs include personnel and overhead related to our manufacturing operations, which include stock-based compensation expense, related occupancy, computer services, equipment costs, manufacturing quality, order fulfillment, warranty adjustments, and inventory adjustments including write-downs for inventory obsolescence.
Although we outsource a significant portion of our manufacturing activities, we do have some proprietary semiconductor fabrication facilities. If we are unable to utilize our owned fabrication facilities at a desired level, the fixed costs associated with these facilities will not be fully absorbed, resulting in higher average unit costs and lower gross margins.
Cost of subscriptions and services. Cost of subscriptions and services consists of personnel, project costs associated with professional services or support of our subscriptions and services revenue, and allocated facilities costs and other corporate expenses. Personnel costs include stock-based compensation expense.
Total cost of revenue also includes amortization of acquisition-related intangible assets and restructuring charges.
Research and development.   Research and development expense consists primarily of personnel costs for our engineers engaged in the design and development of our products and technologies, including stock-based compensation expense. These expenses also include project material costs, third-party fees paid to consultants, prototype development expense, allocated facilities costs and other corporate expenses, and computer services costs related to supporting computer tools used in the engineering and design process.
Selling , general and administrative.   Selling expense consists primarily of compensation and associated costs for sales and marketing personnel, including stock-based compensation expense, sales commissions paid to our independent sales representatives, advertising costs, trade shows, corporate marketing, promotion, travel related to our sales and marketing operations, related occupancy and equipment costs, and other marketing costs. General and administrative expense consists primarily of compensation and associated costs for executive management, finance, human resources and other administrative personnel, including stock-based compensation expense, outside professional fees, allocated facilities costs, acquisition-related costs, which include direct transaction costs and integration costs, and other corporate expenses.
Amortization of acquisition-related intangible assets.   In connection with our acquisitions, we recognize intangible assets that are amortized over their estimated useful lives. We also recognize goodwill, which is not amortized, and in-process research and development (“IPR&D”), which is initially capitalized as an indefinite-lived intangible asset, in connection with our acquisitions. Upon completion of each underlying project, IPR&D assets are reclassified as amortizable purchased intangible assets and amortized over their estimated useful lives.
Restructuring and other charges. Restructuring and other charges consist primarily of non-recurring charges related to compensation costs associated with employee exit programs, IP litigation, alignment of our global manufacturing operations, rationalization of product development program costs, facility and lease abandonments, asset impairment, and other exit costs, including curtailment of service or supply agreements.
Interest expense.  Interest expense includes coupon interest, commitment fees, accretion of original issue discount, amortization of debt premiums and debt issuance costs, and expenses related to debt modifications or extinguishments.
Other income, net.   Other income, net includes interest income, gains and losses on investments or sales of businesses, foreign currency remeasurement, and other miscellaneous items.
Provision for (benefit from) income taxes.   We benefit from the tax incentives extended to us in various jurisdictions to encourage investment or employment. Our tax incentives from the Singapore Economic Development Board provide that any qualifying income earned in Singapore is subject to tax incentives or reduced rates of Singapore income tax, subject to our compliance with the conditions specified in these incentives and legislative developments. These Singapore tax incentives are scheduled to expire through November 2030. The corporate income tax rate in Singapore that would otherwise apply to us would be 17%. We also have a tax holiday from our qualifying income earned in Malaysia, which is scheduled to expire in 2028.
Each tax incentive and tax holiday is subject to our compliance with various operating and other conditions. If we cannot, or elect not to, comply with any such operating conditions specified, we could, in some instances, be required to refund previously realized material tax benefits, or if such tax incentive or tax holiday is terminated prior to its expiration absent a new incentive applying, we will lose the related tax benefits earlier than scheduled. We may elect to modify our
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operational structure and tax strategy, which may not be as beneficial to us as the benefits provided under the present tax concession arrangements. Before taking into consideration the impacts of indirect taxes, the effect of these tax incentives and tax holiday decreased the provision for income taxes by approximately $2,709 million and $2,261 million for fiscal years 2025 and 2024, respectively.
Our interpretations and conclusions regarding the tax incentives are not binding on any taxing authority, and if our assumptions about tax and other laws are incorrect, the benefits of the tax incentives may be adversely affected.
Many countries have enacted or are in the process of enacting a global minimum tax, some of which became effective for us starting in our fiscal year 2025 and, more importantly, the enactment in Singapore will become effective in our fiscal year ending November 1, 2026 (“fiscal year 2026”). While the tax did not have a material impact on our fiscal year 2025 consolidated results of operations, we expect a material impact from the enactment of these laws on our consolidated results of operations and cash flows for our fiscal year 2026.

Critical Accounting Estimates
The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Our actual financial results may differ materially and adversely from our estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies include revenue recognition, business combinations, valuation of goodwill and long-lived assets, and income taxes. See Note 2. “Summary of Significant Accounting Policies” included in Part II, Item 8 of this Annual Report on Form 10-K for further information on our critical accounting policies and estimates.
Revenue recognition.  We account for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable we will collect substantially all of the consideration we are entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer. Our products and services can be broadly categorized as sales of products and subscriptions and services.
We recognize products revenue from sales to direct customers and distributors when control transfers to the customer. An allowance for distributor credits covering price adjustments is made based on our estimate of historical experience rates as well as considering economic conditions and contractual terms. To date, actual distributor claims activity has been materially consistent with the provisions we have made based on our historical estimates. However, because of the inherent nature of estimates, there is always a risk that there could be significant differences between actual amounts and our estimates. Different judgments or estimates could result in variances that might be significant to reported operating results. We also record reductions of revenue for rebates in the same period that the related revenue is recorded. We accrue 100% of potential rebates at the time of sale. We reverse the accrual of unclaimed rebate amounts as specific rebate programs contractually end and when we believe unclaimed rebates are no longer subject to payment and will not be paid. Thus, the reversal of unclaimed rebates may have a positive impact on our net revenue and net income in subsequent periods.
Business combinations.  Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date, for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain acquired intangible assets include, the present value of projected cash flows regarding the projected revenues, projected expenses which include cost of revenue, research and development and selling, general and administrative expenses, technology obsolescence rate, contributory asset charges, discount rate and income tax rate for developed technology; the projected revenues, customer retention rate, customer ramp up period, discount rate and income tax rate for the customer contracts and related relationships; the projected revenues, technology obsolescence rate, expected costs to develop IPR&D into commercially viable products, discount rate and income tax rate for the IPR&D; and the projected revenues, brand asset phase-out pattern, brand asset royalty rate, discount rate and the income tax rate for the trade name. Unanticipated events and circumstances may occur which could affect the accuracy or validity of such assumptions, estimates or actual results.
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Valuation of goodwill and long-lived assets.  We perform an annual impairment review of our goodwill during the fourth fiscal quarter of each fiscal year, and more frequently if we believe indicators of impairment exist. The process of evaluating the potential impairment of goodwill is highly subjective and requires significant judgment. To review for impairment, we first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. Our qualitative assessment of the recoverability of goodwill, whether performed annually or based on specific events or circumstances, considers various macroeconomic, industry-specific and company-specific factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of our financial performance; or (iv) a sustained decrease in our market capitalization below our net book value. After assessing the totality of events and circumstances, if we determine that it is not more likely than not that the fair value of any of our reporting units is less than its carrying amount, no further assessment is performed. If we determine that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, we calculate the fair value of that reporting unit and compare the fair value to the reporting unit’s net book value.
Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. Our goodwill impairment test uses both the income approach and the market approach to estimate a reporting unit's fair value. The income approach is based on the discounted cash flow method that uses the reporting unit estimates for forecasted future financial performance, including revenues, operating expenses, and taxes, as well as working capital and capital asset requirements. These estimates are developed as part of our long-term planning process based on assumed market segment growth rates and our assumed market segment share, estimated costs based on historical data and various internal estimates. Projected cash flows are then discounted to a present value employing a discount rate that properly accounts for the estimated market weighted-average cost of capital, as well as any risk unique to the subject cash flows. The market approach is based on weighting the financial multiples of comparable companies and applying a control premium. A reporting unit's carrying value represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash and debt.
We assess the impairment of long-lived assets, including purchased IPR&D, property, plant and equipment, right-of-use assets, and intangible assets, whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Factors we consider important which could trigger an impairment review include: (i) significant under-performance relative to historical or projected future operating results, (ii) significant changes in the manner of our use of the acquired assets or the strategy for our overall business, or (iii) significant negative industry or economic trends. The process of evaluating the potential impairment of long-lived assets under the accounting guidance on property, plant and equipment, and intangible assets is also highly subjective and requires significant judgment. In order to estimate the fair value of long-lived assets, we typically make various assumptions about the future prospects of our business or the part of our business to which the long-lived assets relate. We also consider market factors specific to the business and estimate future cash flows to be generated by the business, which requires significant judgment as it is based on assumptions about market demand for our products over a number of future years. Based on these assumptions and estimates, we determine whether we need to take an impairment charge to reduce the value of the long-lived assets stated on our consolidated balance sheets to reflect their estimated fair value. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors, such as the real estate market, industry and economic trends, and internal factors, such as changes in our business strategy and our internal forecasts. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, changes in assumptions and estimates could materially impact our reported financial results.
Income taxes. Significant management judgment is required in developing our provision for or benefit from income taxes, including the determination of deferred tax assets and liabilities and any valuation allowances that might be required against the deferred tax assets. We have considered projected future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for valuation allowances. An adjustment to the valuation allowance will either increase or decrease our provision for or benefit from income taxes in the period such determination is made. In evaluating the exposure associated with various tax filing positions, we accrue an income tax liability when such positions do not meet the more-likely-than-not threshold for recognition.
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions. We recognize potential liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes, interest, and penalties will be due. If our estimate of income tax liabilities proves to be less than the actual amount ultimately assessed, a further charge to tax expense would be required. If the payment of these amounts ultimately proves to be unnecessary, the reversal of the accrued liabilities would result in tax benefits being recognized in the period when we determine the liabilities no longer exist.
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Fiscal Year Presentation
We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal year 2025 was a 52-week fiscal year. Fiscal year 2024 was a 53-week fiscal year and fiscal year 2023 was a 52-week fiscal year.
The financial statements included in Part II, Item 8 of this Annual Report on Form 10-K are presented in accordance with GAAP and expressed in U.S. dollars.
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Results of Operations
Fiscal Year 2025 Compared to Fiscal Year 2024
The following table sets forth our results of operations for the periods presented:

  Fiscal Year Ended
November 2,
2025 November 3,
2024 November 2,
2025 November 3,
2024

  (In millions) (As a percentage of net revenue)
Statements of Operations Data:        
Net revenue:
Products $ 44,847  $ 34,960  70  % 68  %
Subscriptions and services 19,040  16,614  30  32 
Total net revenue 63,887  51,574  100  100 
Cost of revenue:
Cost of products sold 12,115  9,805  19  19 
Cost of subscriptions and services 2,371  2,983  4  6 

Amortization of acquisition-related intangible assets 6,031  6,023  9  12 
Restructuring charges 76  254  —  — 
Total cost of revenue 20,593  19,065  32  37 
Gross margin 43,294  32,509  68  63 
Research and development 10,977  9,310  17  18 
Selling, general and administrative 4,211  4,959  7  10 
Amortization of acquisition-related intangible assets 2,031  3,244  3  6 
Restructuring and other charges
591  1,533  1  3 

Total operating expenses 17,810  19,046  28  37 
Operating income $ 25,484  $ 13,463  40  % 26  %

In fiscal year 2025, we included upfront license revenue of $7,800 million within products revenue. To conform to the current year presentation, we reclassified $4,601 million of upfront license revenue from subscriptions and services revenue to products revenue for fiscal year 2024. We also reclassified the related costs for the upfront license revenue, which were immaterial, for the periods presented. See Note 3. “Revenue from Contracts with Customers” in Part II, Item 8. of this Annual Report on Form 10-K for additional information.
Net Revenue
A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one semiconductor solutions customer, which is a distributor, accounted for 32% and 28% of our net revenue for fiscal years 2025 and 2024, respectively.
We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 40% of our net revenue for each of the fiscal years 2025 and 2024. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
From time to time, some of our key semiconductor customers place large orders or delay orders, causing our quarterly net revenue to fluctuate significantly. This is particularly true of our products used in AI and wireless applications as fluctuations may be magnified by the timing of customer deployments, as well as product launches. For infrastructure software, the transition to subscription licenses, as well as whether or not a customer has the right to terminate, causes variations in revenue recognized in each period.
Although we recognize revenue for the majority of our products when title and control transfer in Penang, Malaysia, we disclose net revenue by country based primarily on the geographic shipment or delivery location specified by our distributors, OEMs, contract manufacturers, channel partners, or software customers. In fiscal years 2025 and 2024, 17% and 20%, respectively, of our net revenue came from shipments or deliveries to China (including Hong Kong). However, the end customers for either our products or for the end products into which our products are incorporated, are frequently located in countries other than China (including Hong Kong). As a result, we believe that a substantially smaller percentage of our net
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revenue is ultimately dependent on sales of either our product or our customers’ product incorporating our product, to end customers located in China (including Hong Kong).
The following tables set forth net revenue by segment for the periods presented:

Fiscal Year Ended
Net Revenue by Segment November 2,
2025 November 3,
2024 $ Change % Change

(In millions, except percentages)
Semiconductor solutions $ 36,858  $ 30,096  $ 6,762  22  %
Infrastructure software 27,029  21,478  5,551  26  %
Total net revenue $ 63,887  $ 51,574  $ 12,313  24  %

Fiscal Year Ended
Net Revenue by Segment November 2, 2025 November 3, 2024

(As a percentage of net revenue)
Semiconductor solutions 58  % 58  %
Infrastructure software 42  42 
Total net revenue 100  % 100  %

Net revenue from our semiconductor solutions segment increased due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products. Net revenue from our infrastructure software segment increased primarily due to strong demand for our VCF product, including license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model.
Gross Margin
Gross margin was $43,294 million for fiscal year 2025 compared to $32,509 million for fiscal year 2024. The increase was primarily due to higher software revenue and strong product demand for our AI-related semiconductor solutions.
As a percentage of net revenue, gross margin was 68% and 63% of net revenue for the fiscal years 2025 and 2024, respectively. The increase was primarily due to higher revenue impact on margin and higher infrastructure software gross margin percentage, driven by an increase in license revenue and lower infrastructure software labor costs following our integration of the VMware business.
Research and Development Expense
Research and development expense increased $1,667 million, or 18%, in fiscal year 2025, compared to the prior fiscal year. The increase was primarily due to higher stock-based compensation.
Selling, General and Administrative Expense
Selling, general and administrative expense decreased $748 million, or 15%, in fiscal year 2025, compared to the prior fiscal year. The decrease was primarily due to lower compensation resulting from a decrease in headcount and lower VMware acquisition-related costs, partially offset by higher stock-based compensation.
Amortization of Acquisition-Related Intangible Assets in Operating Expenses
Amortization of acquisition-related intangible assets recognized in operating expenses decreased $1,213 million, or 37%, in fiscal year 2025, compared to the prior fiscal year primarily due to full amortization of customer-related intangible assets from previous software acquisitions other than VMware.
Restructuring and Other Charges
Restructuring and other charges recognized in operating expenses decreased $942 million, or 61%, in fiscal year 2025, compared to the prior fiscal year primarily due to lower employee termination costs associated with the integration of the VMware business.
Stock-Based Compensation Expense
During the fiscal quarter ended May 4, 2025, we granted two-year time- and market-based restricted stock unit awards (the “Two-Year Equity Awards”), in lieu of our annual employee equity awards historically granted in the second quarter of each fiscal year. Each Two-Year Equity Award vests on the same basis as two annual grants with staggered vesting start dates
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of March 15, 2025 and March 15, 2026 and successive four-year vesting periods. We recognize stock-based compensation expense related to these awards from the grant date through their respective vesting date, ranging from four to five years.
Total stock-based compensation expense was $7,568 million and $5,670 million for fiscal years 2025 and 2024, respectively. The increase was primarily due to the Two-Year Equity Awards granted at higher grant-date fair values, partially offset by the full vesting and forfeitures of certain equity awards assumed in the VMware acquisition.
The following table sets forth the total unrecognized compensation cost related to unvested stock-based awards outstanding and expected to vest as of November 2, 2025. The remaining weighted-average service period was 3.4 years.

Fiscal Year: Unrecognized Compensation Cost, Net of Expected Forfeitures
(In millions)
2026
$ 8,301 
2027
7,118 
2028
4,985 
2029
2,689 
2030
740 
Total $ 23,833 

Segment Operating Results

Fiscal Year Ended
Operating Income by Segment November 2, 2025 November 3, 2024 $ Change % Change

(In millions, except percentages)
Semiconductor solutions $ 21,232  $ 16,759  $ 4,473  27  %
Infrastructure software 20,765  13,977  6,788  49  %
Unallocated expenses (16,513) (17,273) 760  (4) %
Total operating income $ 25,484  $ 13,463  $ 12,021  89  %

Operating income from our semiconductor solutions segment increased due to strong demand for our networking solutions, primarily custom AI accelerators and AI networking products.
Higher operating income from our infrastructure software segment was primarily due to strong demand for our VCF product, including license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model. In addition, labor costs were lower following our integration of the VMware business.
Unallocated expenses include amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, and acquisition-related costs which are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses decreased 4% in fiscal year 2025, compared to the prior fiscal year, primarily due to lower amortization of acquisition-related intangible assets, restructuring and other charges, and acquisition-related costs, partially offset by higher stock-based compensation expense.
Non-Operating Income and Expenses
Interest expense. Interest expense was $3,210 million and $3,953 million for fiscal years 2025 and 2024, respectively. The decrease was primarily from a reduction in outstanding debt balances and debt refinancing activities that drove lower effective interest rates compared to the prior fiscal year.
Other income, net. Other income, net includes interest income, gains and losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $455 million and $406 million for fiscal years 2025 and 2024, respectively. The increase was primarily due to a gain on the sale of a business, partially offset by lower interest income as a result of lower interest rates on lower invested balances.
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Provision for (benefit from) income taxes. On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, which allows for the immediate expensing of domestic research and development costs and certain capital expenditures, and changes the United States taxation of profits derived from foreign operations. As a result, it is no longer more-likely-than-not that we are able to utilize our federal corporate alternative minimum tax (“CAMT”) credits, and we established a $1,321 million valuation allowance against our CAMT credit carryforwards and CAMT credits generated in the current fiscal year. Our policy is to not consider the impact of future years’ CAMT in our valuation allowance assessment for regular deferred tax assets. Most of the provisions are effective beginning in our fiscal years ending November 1, 2026 or October 31, 2027, with the exception of immediate expensing of qualifying property being effective in fiscal year 2025.
The benefit from income taxes was $397 million for fiscal year 2025, and was primarily due to the recognition of uncertain tax benefits from expiration of statutes of limitations and audit settlements, and excess tax benefits from stock-based awards, partially offset by income from operations and a valuation allowance against our CAMT credits.
The provision for income taxes was $3,748 million for fiscal year 2024, and was primarily due to the impact of a non-recurring intra-group transfer of certain IP rights to the United States as a result of supply chain realignment and the resulting shift in the jurisdictional mix of income, partially offset by excess tax benefits from stock-based awards.

Liquidity and Capital Resources
The following section discusses our principal liquidity and capital resources as well as our primary liquidity requirements and uses of cash. Our cash and cash equivalents are maintained in highly liquid investments with remaining maturities of 90 days or less at the time of purchase. We believe our cash equivalents are liquid and accessible.
Our primary sources of liquidity as of November 2, 2025 consisted of: (i) $16,178 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets and debt or equity financings from time to time.
Our short-term and long-term liquidity requirements primarily arise from: (i) working capital requirements, (ii) research and development and capital expenditure needs, (iii) cash dividend payments (if and when declared by our Board of Directors), (iv) interest and principal payments related to our $67,120 million of outstanding indebtedness with $3,152 million principal amounts payable within 12 months, (v) payment of income taxes, (vi) business acquisitions and investments we may make from time to time, and (vii) discretionary share repurchases. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control. We expect capital expenditures to be higher in fiscal year 2026 as compared to fiscal year 2025.
We believe that our cash and cash equivalents on hand, cash flows from operations and our revolving credit facility will provide sufficient liquidity to operate our business and fund our current obligations for at least the next 12 months. For additional information regarding our cash requirement from contractual obligations, indebtedness and lease obligations, see Note 14. “Commitments and Contingencies”, Note 10. “Borrowings” and Note 6. “Leases” in Part II, Item 8 of this Annual Report on Form 10-K.
From time to time, we engage in discussions with third parties regarding potential acquisitions of, or investments in, businesses, technologies and product lines. Any such transaction, or evaluation of potential transactions, could require significant use of our cash and cash equivalents, or require us to increase our borrowings to fund such transactions. If we do not have sufficient cash to fund our operations or finance growth opportunities, including acquisitions, or unanticipated capital expenditures, our business and financial condition could suffer. In such circumstances, we may seek to obtain new debt or equity financing. However, we cannot assure you that such additional financing will be available on terms acceptable to us or at all. Our ability to service our outstanding indebtedness and any other indebtedness we may incur will depend on our ability to generate cash in the future. We may also elect to issue additional debt or equity securities for reasons other than those specified above. From time to time, we manage our indebtedness through financings, redemptions, repayments, exchanges, tender offers, and other transactions. Such transactions will depend on prevailing market conditions, our liquidity requirements, the terms of indentures, contractual restrictions and other factors.
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Working Capital
Working capital increased to $13,059 million at November 2, 2025 from $2,898 million at November 3, 2024. The increase was primarily attributable to the following:
• Cash and cash equivalents increased to $16,178 million at November 2, 2025 from $9,348 million at November 3, 2024 primarily due to $27,537 million in net cash provided by operating activities, partially offset by $11,142 million of dividend payments, $3,860 million of employee withholding tax payments related to net settled equity awards, $2,812 million of net repayments of borrowings, and $2,450 million of common stock repurchases.
• Trade accounts receivable, net increased to $7,145 million at November 2, 2025 from $4,416 million at November 3, 2024 primarily due to higher billings.
• Other current assets increased to $5,980 million at November 2, 2025 from $4,071 million at November 3, 2024 primarily from higher software contract assets, offset in part by lower prepaid taxes and the sale of assets held for sale.
These increases in working capital were offset in part by the following:
• Short-term debt increased to $3,152 million at November 2, 2025 from $1,271 million at November 3, 2024 primarily due to certain senior notes becoming due within the next twelve months, offset in part by repayments.
Capital Returns

Fiscal Year Ended
Cash Dividends Declared and Paid November 2, 2025 November 3, 2024

(In millions, except per share data)
Dividends per share to common stockholders $ 2.360  $ 2.105 
Dividends to common stockholders $ 11,142  $ 9,814 

In April 2025, our Board of Directors authorized a stock repurchase program to repurchase up to $10 billion of our common stock from time to time through December 31, 2025, which was extended to December 31, 2026 subsequent to fiscal year 2025 . During fiscal year 2025, we repurchased and retired 16 million shares of our common stock for $2,450 million with a $7,550 million remaining authorized amount available for future purchases as of November 2, 2025.
Repurchases under this stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.
In December 2021 and May 2022, our Board of Directors authorized stock repurchase programs to repurchase up to an aggregate of $20 billion of our common stock from time to time through December 31, 2023. During the first quarter of fiscal year 2024, we repurchased and retired 67 million shares of our common stock for $7,176 million, and all $20 billion of the aggregate authorized amount was utilized prior to expiration on December 31, 2023.
During fiscal years 2025 and 2024, we paid $3,860 million and $5,216 million, respectively, in employee withholding taxes due upon the vesting of net settled equity awards. We withheld 17 million and 38 million shares of common stock from employees in connection with such net share settlements during fiscal years 2025 and 2024, respectively. In the second half of fiscal year 2025, we settled withholding taxes upon the vesting of employee equity awards using proceeds from the sale of a portion of the vested shares.
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Cash Flows

  Fiscal Year Ended
November 2, 2025 November 3, 2024

(In millions)
Net cash provided by operating activities $ 27,537  $ 19,962 
Net cash used in investing activities (580) (23,070)
Net cash used in financing activities (20,127) (1,733)
Net change in cash and cash equivalents $ 6,830  $ (4,841)

Operating Activities
Cash flows from operating activities consist of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $7,575 million increase in cash provided by operations during fiscal year 2025 compared to fiscal year 2024 was primarily due to $17,231 million higher net income, offset in part by $5,973 million lower non-cash adjustments for deferred taxes and other non-cash taxes, as well as $3,863 million from changes in operating assets and liabilities.
Investing Activities
Cash flows from investing activities primarily consist of cash used for acquisitions, proceeds from sales of businesses, capital expenditures, and proceeds and payments related to investments. The $22,490 million decrease in cash used in investing activities during fiscal year 2025 compared to fiscal year 2024 was primarily due to $25,416 million cash paid in connection with the acquisition of VMware, net of cash acquired in fiscal year 2024, offset in part by $3,185 million lower proceeds from sales of businesses in fiscal year 2025 compared to fiscal year 2024.
Financing Activities
Cash flows from financing activities primarily consist of proceeds and payments related to our borrowings, dividend payments, employee withholding tax payments related to net settled equity awards and authorized stock repurchases. The $18,394 million increase in cash used in financing activities during fiscal year 2025 compared to fiscal year 2024 was primarily due to net proceeds from term loans issued in connection with the acquisition of VMware in fiscal year 2024, debt repayments and higher dividend payments in fiscal year 2025, offset in part by lower stock repurchases and employee withholding tax payments related to net settled equity awards in fiscal year 2025 compared to fiscal year 2024.

ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Foreign Currency Exchange Risk
From time to time, we use foreign exchange forward contracts to hedge a portion of our exposures to changes in currency exchange rates, which result from our global operating and financing activities. We do not use derivative financial instruments for trading or speculative purposes. A hypothetical 10% change in currency exchange rates would not have a material impact on our consolidated financial statements.
Interest Rate Risk
Changes in interest rates affect the fair value of our outstanding fixed-rate borrowings. As of November 2, 2025 and November 3, 2024, we had $67.1 billion and $56.3 billion in principal amount of fixed-rate borrowings outstanding, and the estimated aggregate fair value of these borrowings was $64.6 billion and $51.4 billion, respectively. As of November 2, 2025 and November 3, 2024, a hypothetical 50 basis point increase or decrease in market interest rates would change the fair value of our fixed-rate borrowings by approximately $1.9 billion and $1.7 billion, respectively. However, this hypothetical change in interest rates would not impact the interest expense on our borrowings outstanding. To hedge variability of cash flows due to changes in the benchmark interest rate of anticipated future debt issuances, we have entered, and in the future may enter, into treasury rate lock contracts.
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ITEM 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

BROADCOM INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
  Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 238 )
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Consolidated Balance Sheets
47

Consolidated Statements of Operations
48

Consolidated Statements of Comprehensive Income
49

Consolidated Statements of Cash Flows
50

Consolidated Statements of Stockholders' Equity
51

Notes to Consolidated Financial Statements
52

Schedule II — Valuation and Qualifying Accounts
88

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Broadcom Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Broadcom Inc. and its subsidiaries (the “Company”) as of November 2, 2025 and November 3, 2024, and the related consolidated statements of operations, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended November 2, 2025, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of November 2, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of November 2, 2025 and November 3, 2024, and the results of its operations and its cash flows for each of the three years in the period ended November 2, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of November 2, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition — Certain Software and Support Revenue in the Infrastructure Software Segment

As disclosed in Note 13 to the consolidated financial statements, the Company’s net revenue for the infrastructure software segment for the year ended November 2, 2025 was $27,029 million, a significant portion of which related to certain software and support revenue. As disclosed in Note 2, revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer. Software arrangements primarily consist of fees that provide customers with a right to use the Company’s software and access general support and maintenance. Certain software arrangements permit customers to unilaterally cancel these arrangements at any time at the customer’s convenience, referred to as termination for convenience provisions. For software arrangements without termination for convenience provisions, management recognizes revenue for the license portion of the agreements upfront upon transfer of control to the customer. For software arrangements with termination for convenience provisions, management accounts for these arrangements as a series of daily contracts, resulting in ratable revenue recognition over the contractual period. Support services consist primarily of telephone support and the provision of unspecified updates and upgrades on a when-and-if-available basis for which revenue is recognized ratably over the term of the arrangement. Management allocates total contract consideration to each distinct performance obligation in a bundled arrangement on a relative standalone selling price basis. Management uses directly observable transactions to determine the standalone selling prices for performance obligations.

The principal consideration for our determination that performing procedures relating to revenue recognition of certain software and support revenue in the infrastructure software segment is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process. These procedures also included, among others, (i) testing revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as quotes, contracts, purchase orders, evidence of transfer of control, and invoices; (ii) recalculating revenue recognized for a sample of transactions, including, where applicable, the allocation of transaction price to the performance obligations based on relative standalone selling price; (iii) testing the completeness and accuracy of the historical selling price data used to determine the standalone selling price of the performance obligations and recalculating management’s determination of the standalone selling price; and (iv) confirming a sample of outstanding customer invoice balances as of November 2, 2025 and, for confirmations not returned, obtaining and inspecting source documents such as contracts, invoices, sales orders, and subsequent cash receipts.

/s/ PricewaterhouseCoopers LLP

San Jose, California
December 18, 2025
We have served as the Company’s auditor since 2006.

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BROADCOM INC.
CONSOLIDATED BALANCE SHEETS
November 2,
2025 November 3,
2024

(In millions, except par value)
ASSETS    
Current assets:    
Cash and cash equivalents $ 16,178   $ 9,348  

Trade accounts receivable, net 7,145   4,416  
Inventory 2,270   1,760  

Other current assets 5,980   4,071  
Total current assets 31,573   19,595  
Long-term assets:
Property, plant and equipment, net 2,530   2,521  
Goodwill 97,801   97,873  
Intangible assets, net 32,273   40,583  
Other long-term assets 6,915   5,073  
Total assets $ 171,092   $ 165,645  
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $ 1,560   $ 1,662  
Employee compensation and benefits 2,129   1,971  
Short-term debt 3,152   1,271  
Other current liabilities 11,673   11,793  
Total current liabilities 18,514   16,697  
Long-term liabilities:    
Long-term debt 61,984   66,295  

Other long-term liabilities 9,302   14,975  
Total liabilities 89,800   97,967  
Commitments and contingencies (Note 14)

Stockholders’ equity:    
Preferred stock, $ 0.001 par value; 100 shares authorized; none issued and outstanding
—   —  
Common stock, $ 0.001 par value; 29,000 shares authorized; 4,741 and 4,686 shares issued and outstanding as of November 2, 2025 and November 3, 2024, respectively
5   5  
Additional paid-in capital
71,308   67,466  
Retained earnings 9,761   —  
Accumulated other comprehensive income
218   207  
Total stockholders’ equity 81,292   67,678  
Total liabilities and equity $ 171,092   $ 165,645  

The accompanying notes are an integral part of these consolidated financial statements.
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BROADCOM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Year Ended
November 2,
2025 November 3,
2024 October 29,
2023

(In millions, except per share data)
Net revenue:
Products $ 44,847   $ 34,960   $ 28,949  
Subscriptions and services 19,040   16,614   6,870  
Total net revenue 63,887   51,574   35,819  
Cost of revenue:  
Cost of products sold 12,115   9,805   8,641  
Cost of subscriptions and services 2,371   2,983   631  

Amortization of acquisition-related intangible assets 6,031   6,023   1,853  
Restructuring charges 76   254   4  
Total cost of revenue 20,593   19,065   11,129  
Gross margin 43,294   32,509   24,690  
Research and development 10,977   9,310   5,253  
Selling, general and administrative 4,211   4,959   1,592  
Amortization of acquisition-related intangible assets 2,031   3,244   1,394  
Restructuring and other charges
591   1,533   244  

Total operating expenses 17,810   19,046   8,483  
Operating income 25,484   13,463   16,207  
Interest expense ( 3,210 ) ( 3,953 ) ( 1,622 )

Other income, net
455   406   512  
Income from continuing operations before income taxes
22,729   9,916   15,097  
Provision for (benefit from) income taxes
( 397 ) 3,748   1,015  
Income from continuing operations 23,126   6,168   14,082  
Loss from discontinued operations, net of income taxes —   ( 273 ) —  
Net income $ 23,126   $ 5,895   $ 14,082  

Basic income per share:

Income per share from continuing operations
$ 4.91   $ 1.33   $ 3.39  
Loss per share from discontinued operations
—   ( 0.06 ) —  
Net income per share
$ 4.91   $ 1.27   $ 3.39  

Diluted income per share:

Income per share from continuing operations $ 4.77   $ 1.29   $ 3.30  
Loss per share from discontinued operations —   ( 0.06 ) —  
Net income per share $ 4.77   $ 1.23   $ 3.30  

Weighted-average shares used in per share calculations:  
Basic 4,712   4,624   4,149  
Diluted 4,853   4,778   4,272  

The accompanying notes are an integral part of these consolidated financial statements.
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BROADCOM INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Fiscal Year Ended
November 2,
2025 November 3,
2024 October 29,
2023

(In millions)
Net income $ 23,126   $ 5,895   $ 14,082  
Other comprehensive income, net of tax:

Change in unrealized gain on derivative instruments ( 4 ) ( 1 ) 290  
Change in actuarial loss and prior service costs associated with defined benefit plans 15   1   ( 29 )
Other comprehensive income, net of tax
11   —   261  
Comprehensive income $ 23,137   $ 5,895   $ 14,343  

The accompanying notes are an integral part of these consolidated financial statements.
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BROADCOM INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year Ended
November 2,
2025 November 3,
2024 October 29,
2023

(In millions)
Cash flows from operating activities:    
Net income $ 23,126   $ 5,895   $ 14,082  
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of intangible and right-of-use assets 8,201   9,417   3,333  
Depreciation 574   593   502  
Stock-based compensation 7,568   5,741   2,171  
Deferred taxes and other non-cash taxes ( 4,008 ) 1,965   ( 501 )
Loss on debt extinguishment 138   157   —  

Non-cash interest expense 344   427   132  
Other 94   404   9  
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net ( 2,717 ) 2,327   ( 187 )
Inventory ( 510 ) 150   27  
Accounts payable ( 118 ) 121   209  
Employee compensation and benefits 300   78   ( 279 )

Other current assets and current liabilities ( 1,837 ) ( 5,323 ) ( 628 )
Other long-term assets and long-term liabilities ( 3,618 ) ( 1,990 ) ( 785 )
Net cash provided by operating activities 27,537   19,962   18,085  
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired —   ( 25,978 ) ( 53 )
Proceeds from sales of businesses
300   3,485   —  
Purchases of property, plant and equipment ( 623 ) ( 548 ) ( 452 )

Purchases of investments ( 597 ) ( 175 ) ( 346 )
Sales of investments 248   156   228  
Other 92   ( 10 ) ( 66 )
Net cash used in investing activities ( 580 ) ( 23,070 ) ( 689 )
Cash flows from financing activities:
Proceeds from long-term borrowings 15,666   39,954   —  
Payments on debt obligations ( 18,478 ) ( 19,608 ) ( 403 )

Payments of dividends ( 11,142 ) ( 9,814 ) ( 7,645 )
Repurchases of common stock - repurchase program ( 2,450 ) ( 7,176 ) ( 5,824 )
Shares repurchased for tax withholdings on vesting of equity awards ( 3,860 ) ( 5,216 ) ( 1,861 )

Issuance of common stock 221   190   122  

Other ( 84 ) ( 63 ) ( 12 )
Net cash used in financing activities ( 20,127 ) ( 1,733 ) ( 15,623 )
Net change in cash and cash equivalents 6,830   ( 4,841 ) 1,773  
Cash and cash equivalents at beginning of period 9,348   14,189   12,416  
Cash and cash equivalents at end of period $ 16,178   $ 9,348   $ 14,189  
Supplemental disclosure of cash flow information:
Cash paid for interest $ 2,672   $ 3,250   $ 1,503  
Cash paid for income taxes $ 2,589   $ 3,155   $ 1,782  

The accompanying notes are an integral part of these consolidated financial statements.
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BROADCOM INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common Stock Additional Paid-in Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss)
Total
Stockholders’
Equity
Shares Par Value

(In millions)
Balance as of October 30, 2022 4,179   $ 4   $ 21,155   $ 1,604   $ ( 54 ) $ 22,709  
Net income —  —  —  14,082   —  14,082  
Other comprehensive income
—  —  —  —  261   261  

Dividends to common stockholders —  —  —   ( 7,645 ) —  ( 7,645 )

Common stock issued 77   —   122   —  —  122  
Stock-based compensation —  —  2,171   —  —  2,171  
Repurchases of common stock
( 91 ) —   ( 481 ) ( 5,359 ) —  ( 5,840 )

Shares repurchased for tax withholdings on vesting of equity awards
( 26 ) —   ( 1,872 ) —  —  ( 1,872 )
Balance as of October 29, 2023 4,139   4   21,095   2,682   207   23,988  
Net income —  —  —  5,895   —  5,895  

Issuance of common stock upon the acquisition of VMware, Inc. 544   1   53,420   —  —  53,421  
Fair value of partially vested equity awards assumed in connection with the acquisition of VMware, Inc.
—  —  750   —  —  750  
Dividends to common stockholders —  —  ( 2,809 ) ( 7,005 ) —  ( 9,814 )

Common stock issued 108   —   190   —  —  190  
Stock-based compensation —  —  5,747   —  —  5,747  
Repurchases of common stock
( 67 ) —   ( 5,604 ) ( 1,572 ) —  ( 7,176 )

Shares repurchased for tax withholdings on vesting of equity awards
( 38 ) —   ( 5,323 ) —  —  ( 5,323 )
Balance as of November 3, 2024 4,686   5   67,466   —   207   67,678  
Net income —  —  —  23,126   —  23,126  
Other comprehensive income —  —  —  —  11   11  

Dividends to common stockholders —  —  —   ( 11,142 ) —  ( 11,142 )

Common stock issued 88   —   221   —  —  221  
Stock-based compensation —  —  7,570   —  —  7,570  
Repurchases of common stock ( 16 ) —   ( 227 ) ( 2,223 ) —  ( 2,450 )
Shares repurchased for tax withholdings on vesting of equity awards
( 17 ) —   ( 3,722 ) —  —  ( 3,722 )
Balance as of November 2, 2025 4,741   $ 5   $ 71,308   $ 9,761   $ 218   $ 81,292  

The accompanying notes are an integral part of these consolidated financial statements.
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BROADCOM INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Overview and Basis of Presentation
Overview
Broadcom Inc. (“Broadcom”), a Delaware corporation, is a global technology leader that designs, develops and supplies a broad range of semiconductor and semiconductor-based solutions and infrastructure software solutions. Our semiconductor and semiconductor-based solutions include a broad portfolio of complex digital and mixed signal devices based on silicon wafers with complementary metal oxide semiconductor transistors, III-V based devices, network interface cards and other modules, switches, subsystems and, in some cases, racks. Our solutions are used in a wide array of environments, end products and applications, such as enterprise and artificial intelligence (“AI”) data centers, servers and networking and connectivity equipment, as well as storage systems, home connectivity devices, set-top boxes, broadband access, telecommunication equipment, wireless devices and base stations, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions help enterprises simplify their information technology (“IT”) environments. Our customers rely on our infrastructure and security software solutions to modernize, optimize, and secure the most complex private cloud, hybrid cloud and edge environments. This enables scalability, agility, automation, insights, resiliency and security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our,” and “us” mean Broadcom and its consolidated subsidiaries.
On November 22, 2023, we completed the acquisition of VMware, Inc. (“VMware”) in a cash-and-stock transaction (the “VMware Merger”). The VMware stockholders received approximately $ 30,788 million in cash and 544 million shares of Broadcom common stock (on a split adjusted basis) with a fair value of $ 53,398 million. VMware was a leading provider of multi-cloud services for all applications, enabling digital innovation with enterprise control. We acquired VMware to enhance our infrastructure software capabilities. The accompanying consolidated financial statements include the results of operations of VMware commencing on November 22, 2023. See Note 4. “Acquisitions” for additional information.
Basis of Presentation
We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal year ended November 2, 2025 (“fiscal year 2025”) was a 52-week fiscal year. Our fiscal year ended November 3, 2024 (“fiscal year 2024”) was a 53-week fiscal year. Our fiscal year ended October 29, 2023 (“fiscal year 2023”) was a 52-week fiscal year.
The accompanying consolidated financial statements include the accounts of Broadcom and its subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation.
Certain prior period amounts reported in our consolidated statements of operations have been reclassified to conform to the current year presentation. See Note 3. “Revenue from Contracts with Customers” for additional information.

2. Summary of Significant Accounting Policies
Foreign currency remeasurement.   We operate in a U.S. dollar functional currency environment. Foreign currency assets and liabilities for monetary accounts are remeasured into U.S. dollars at current exchange rates. Non-monetary items such as inventory and property, plant and equipment, are measured and recorded at historical exchange rates. The effects of foreign currency remeasurement were not material for any period presented.
Use of estimates.   The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods.
Cash and cash equivalents.   We consider all highly liquid investment securities with original maturities of three months or less at the date of purchase to be cash equivalents. We determine the appropriate classification of our cash and cash equivalents at the time of purchase.
Trade accounts receivable, net.   Trade accounts receivable are recognized at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which is our best estimate of the expected credit losses in our existing accounts receivable. We determine the allowance based on historical experience and current economic conditions, among other factors. Allowances for doubtful accounts were not material as of November 2, 2025 or November 3, 2024. Accounts receivable are also recognized net of sales returns and distributor credit allowances. These
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amounts are recognized when it is both probable and estimable that discounts will be granted or products will be returned. Allowances for sales returns and distributor credit allowances as of November 2, 2025 and November 3, 2024 were $ 74 million and $ 101 million, respectively.
Concentrations of credit risk and significant customers.   Our cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents may be redeemable upon demand and are maintained with financial institutions that management believes are of high credit quality and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profile of these counterparties. Our accounts receivable are derived from revenue earned from customers located both within and outside the U.S. We mitigate collection risks from our customers by performing regular credit evaluations of our customers’ financial conditions, and require collateral, such as letters of credit and bank guarantees, in certain circumstances.
Concentration of other risks.   We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the emergence of competitive products with new capabilities, general economic conditions worldwide, the ability to safeguard patents and other intellectual property (“IP”) in a rapidly evolving market and reliance on third-party wafer fabricators, assembly and test subcontractors and independent distributors and other factors could affect our financial results.
Inventory.   We value our inventory at the lower of actual cost or net realizable value of the inventory, with cost being determined under the first-in, first-out method. We record a provision for excess and obsolete inventory based primarily on our forecast of product demand and production requirements. The excess and obsolete balance determined by this analysis becomes the basis for our excess and obsolete inventory charge and the written-down value of the inventory becomes its new cost basis.
Retirement benefit plans. For defined benefit pension plans, we consider various factors in determining our respective benefit obligations and net periodic benefit cost, including the number of employees that we expect to receive benefits, their salary levels and years of service, the expected return on plan assets, the discount rate, the timing of the payment of benefits, and other actuarial assumptions. If the actual results and events of the benefit plans differ from our current assumptions, the benefit obligations may be over- or under-valued.
The key assumptions are the discount rate and the expected rate of return on plan assets. The U.S. discount rates are based on a hypothetical yield curve constructed using high-quality corporate bonds selected to yield cash flows that match the expected timing and amount of the benefit payments. The U.S. expected rate of return on plan assets is set equal to the discount rate due to the implementation of our fully-matched, liability-driven investment strategy. We evaluate these assumptions at least annually. For the non-U.S. plans, we set assumptions specific to each country. We have elected to measure defined benefit pension plan assets and liabilities as of October 31, which is the month end that is closest to our fiscal year end.
Derivative instruments.   We use derivative financial instruments to manage exposure to foreign exchange risk and interest rate risk. We do not use derivative financial instruments for speculative or trading purposes.
Outstanding derivatives are recognized as assets or liabilities at their fair values based on Level 2 inputs, as defined in the fair value hierarchy. For derivative instruments designated as cash flow hedges, the changes in fair value are initially recognized in other comprehensive income, net of tax in the period of change, and are subsequently reclassified and recognized in the same line item as the hedged item when either the hedged transactions affect earnings or it becomes probable that the hedged transactions will not occur.
We use foreign exchange forward contracts to manage exposure to foreign exchange risk. These forward contracts are not designated as hedging instruments, and the changes in fair value are recognized in other income, net in the period of change. We did not have any material foreign exchange forward contracts outstanding as of November 2, 2025 or November 3, 2024. The gains and losses recorded in other income, net for derivative instruments not designated as hedges were not material.
During fiscal year 2023 and the fiscal year ended October 30, 2022, we entered into treasury rate lock contracts that mature in approximately one year to hedge variability of cash flows due to changes in the benchmark interest rate of anticipated future debt issuances. These treasury rate locks were designated and accounted for as cash flow hedging instruments. In August 2023, we early settled all treasury rate lock contracts, which had a $ 5.5  billion notional amount, for a cumulative gain of $ 371  million, net of $ 44  million of tax, as a component of accumulated other comprehensive income as of October 29, 2023. The cash receipts from the settlement were included in cash flows from operating activities in the consolidated statement of cash flows during fiscal year 2023. In fiscal years 2025 and 2024, upon the issuance of certain senior notes, as discussed in Note 10. “Borrowings”, we began amortizing a portion of the pre-tax cumulative gain in accumulated other comprehensive income to interest expense using the effective interest method through the maturity dates of the senior notes.
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Property, plant and equipment.   Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Additions, improvements and major renewals are capitalized, and maintenance, repairs and minor renewals are expensed as incurred. Assets are held in construction in progress until placed in service, upon which date, we begin to depreciate these assets. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our property, plant and equipment balances and the resulting gain or loss is reflected in the consolidated statements of operations. Buildings and leasehold improvements are generally depreciated over 15 to 40  years, or over the lease period, whichever is shorter, and machinery and equipment are generally depreciated over 3 to 10 years. We use the straight-line method of depreciation for all property, plant and equipment.
Leases. We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluate whether the lease is an operating lease or a finance lease at the commencement date. We recognize right-of-use (“ROU”) assets and lease liabilities for operating and finance leases with terms greater than 12 months, and account for the lease and non-lease components as a single component. ROU assets represent our right to use an asset for the lease term, while lease liabilities represent our obligation to make lease payments. Operating and finance lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. We use the implicit interest rate or, if not readily determinable, our incremental borrowing rate as of the lease commencement date to determine the present value of lease payments. The incremental borrowing rate is based on our unsecured borrowing rate, adjusted for the effects of collateral. Operating and finance lease ROU assets are recognized net of any lease prepayments and incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is recognized based on the effective interest method over the lease term.
Fair value measurement.   Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy under the guidance on fair value measurements are described below:
Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Quantitative and qualitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee's ability to continue as a going concern.
Business combinations. We account for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition-date fair values, except for revenue contracts acquired, which are recognized in accordance with our revenue recognition policy. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations. Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date, for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based, in part, on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain acquired intangible assets include the present value of projected cash flows regarding the projected revenues, projected expenses which include cost of revenue, research and development and selling, general and administrative expenses, technology obsolescence rate, contributory asset charges, discount rate and income tax rate for developed technology; the projected revenues, customer retention rate, customer ramp up period, discount rate and income tax rate for the customer contracts and related relationships; the projected revenues, technology obsolescence rate, expected costs to develop in-process research and development (“IPR&D”) into commercially
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viable products, discount rate and income tax rate for the IPR&D; and the projected revenues, brand asset phase-out pattern, brand asset royalty rate, discount rate and the income tax rate for the trade name. Unanticipated events and circumstances may occur which could affect the accuracy or validity of such assumptions, estimates or actual results.
Goodwill.   Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is reviewed annually (or more frequently if impairment indicators arise) for impairment. To review for impairment, we first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. Our qualitative assessment of the recoverability of goodwill, whether performed annually or based on specific events or circumstances, considers various macroeconomic, industry-specific and company-specific factors. Those factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of our financial performance; or (iv) a sustained decrease in our market capitalization below our net book value. After assessing the totality of events and circumstances, if we determine that it is not more likely than not that the fair value of any of our reporting units is less than its carrying amount, no further assessment is performed. If we determine that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, we calculate the fair value of that reporting unit and compare the fair value to the reporting unit’s net book value. If the fair value of the reporting unit is greater than its net book value, there is no impairment. Otherwise, we calculate the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit. The implied fair value of goodwill is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions.
Long-lived assets. Purchased finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is recognized over the periods during which the intangible assets are expected to contribute to our cash flows. Purchased IPR&D projects are capitalized at fair value as an indefinite-lived intangible asset and assessed for impairment thereafter. Upon completion of each underlying project, IPR&D assets are reclassified as amortizable purchased intangible assets and amortized over their estimated useful lives. If an IPR&D project is abandoned, we recognize the carrying value of the related intangible asset in our consolidated statements of operations in the period it is abandoned. On a quarterly basis, we monitor factors and changes in circumstances that could indicate carrying amounts of long-lived assets, including purchased intangible assets, ROU assets, and property, plant and equipment, may not be recoverable. Factors we consider important which could trigger an impairment review include: (i) significant under-performance relative to historical or projected future operating results, (ii) significant changes in the manner of our use of the acquired assets or the strategy for our overall business, and (iii) significant negative industry or economic trends. An impairment loss must be measured if the sum of the expected future cash flows (undiscounted and before interest) from the use and eventual disposition of the asset (or asset group) is less than the net book value of the asset (or asset group). The amount of the impairment loss will generally be measured as the difference between the net book value of the asset (or asset group) and the estimated fair value.
Warranty.   We accrue for the estimated costs of product warranties at the time revenue is recognized. Product warranty costs are estimated based upon our historical experience and specific identification of the product requirements, which may fluctuate based on product mix. Additionally, we accrue for warranty costs associated with occasional or unanticipated product quality issues if a loss is probable and can be reasonably estimated.
Revenue recognition.   We account for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable we will collect substantially all of the consideration we are entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer.
Payment terms and conditions vary by contract type, and terms between invoicing and when payment is due are short-term in duration. The timing of revenue recognition and required payments can differ and payment terms are generally structured to provide the customer with predictable and dependable ways to procure our products, not to provide or receive financing from the customer.
Nature of Products and Services
Our products and services can be broadly categorized as sales of products and subscriptions and services. The following is a description of the principal activities from which we generate revenue.
Products. Our products revenue consists of sales of semiconductor and semiconductor-based solutions and the license portion of software arrangements when we recognize revenue upfront.
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We recognize semiconductor products revenue from sales to direct customers and distributors when control transfers to the customer. Rebates and incentives offered to distributors, which are earned when sales to end customers are completed, are estimated at the point of revenue recognition. We have elected to exclude from the transaction price any taxes collected from a customer and to account for shipping and handling activities performed after a customer obtains control of the product as activities to fulfill the promise to transfer the product. From time to time, certain customers agree to pay us secure supply fees in exchange for prioritized fulfillment of product orders. Such fees are included in the transaction price of the product orders and are recognized as revenue in the period that control over the products is transferred to the customer.
We recognize software products revenue for the upfront license portion of software arrangements sold. Our software arrangements primarily consist of fees, which may be paid either at contract inception or in installments over the contract term, that provide customers with a right to use the software, access general support and maintenance, and utilize our professional services. Our software licenses have standalone functionality from which customers derive benefit, and the customer obtains control of the software when it is delivered or made available for download. Certain of our software arrangements permit our customers to unilaterally terminate or cancel these arrangements at any time at the customer’s convenience, referred to as termination for convenience provisions, without substantive termination penalty and receive a pro-rata refund of any prepaid fees. For software arrangements without termination for convenience provisions, we recognize revenue for the license portion of the agreements upfront upon transfer of control to the customer, referred to as upfront license revenue, within products revenue. For software arrangements with termination for convenience provisions, we account for these arrangements as a series of daily contracts, resulting in ratable revenue recognition of software revenue over the contractual period, and include them within subscriptions and services revenue.
Subscriptions and services. Our subscriptions and services revenue consists of sales and royalties from software arrangements, support services, professional services, transfer of IP, and non-recurring engineering (“NRE”) arrangements.
Support services consist primarily of telephone support and the provision of unspecified updates and upgrades on a when-and-if-available basis. We believe that for the majority of software arrangements, customers derive significant benefit from the ongoing support we provide. Support services represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangement.
Professional services consist of implementation, consulting, customer education and customer training services. The obligation to provide professional services is generally satisfied over time, with the customer simultaneously receiving and consuming the benefits as we satisfy our performance obligations.
Rights to our IP are either sold or licensed to a customer. IP revenue recognition is dependent on the nature and terms of each agreement. We recognize IP revenue upon delivery of the IP if there are no substantive future obligations to perform under the arrangement. Sales-based or usage-based royalties from the license of IP are recognized at the later of the period the sales or usages occur or the satisfaction of the performance obligation to which some or all of the sales-based or usage-based royalties have been allocated.
There are two main categories of NRE contracts that we enter into with our customers: (a) NRE contracts in which we develop a custom chip and (b) NRE contracts in which we accelerate our development of a new chip upon the customer’s request. The majority of our NRE contract revenues meet the over time criteria. As such, revenue is recognized over the development period with the measure of progress using the input method based on costs incurred to total cost as the services are provided. For NRE contracts that do not meet the over time criteria, revenue is recognized at a point in time when the NRE services are complete.
Material rights. Contracts with customers may also include material rights that are also performance obligations. These include the right to renew or receive products or services at a discounted price in the future. Revenue allocated to material rights is recognized when the customer exercises the right or the right expires.
Arrangements with Multiple Performance Obligations
Our contracts may contain more than one of the products and services listed above, each of which is separately accounted for as a distinct performance obligation.
Allocation of consideration. We allocate total contract consideration to each distinct performance obligation in a bundled arrangement on a relative standalone selling price basis. The standalone selling price reflects the price we would charge for a specific product or service if it were sold separately in similar circumstances and to similar customers.
Standalone selling price. When available, we use directly observable transactions to determine the standalone selling prices for performance obligations. When directly observable transactions are not available, our estimates of standalone selling price for each performance obligation require judgment that considers multiple factors, including, but not limited to, reasonably available data points such as costs incurred to provide the good or service, market conditions, entity-specific factors such as pricing strategies and objectives, and information about the customer.
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We separately determine the standalone selling prices by product or service type. Additionally, we segment the standalone selling prices for products where the pricing strategies differ, and where there are differences in customers and circumstances that warrant segmentation.
We also estimate the standalone selling price of our material rights. We estimate the value of the customer’s option to purchase or receive additional products or services at a discounted price by estimating the incremental discount the customer would obtain when exercising the option and the likelihood that the option would be exercised.
Other Policies and Judgments
Contract modifications. We may modify contracts to offer customers additional products or services. Each of the additional products and services is generally considered distinct from those products or services transferred to the customer before the modification. We evaluate whether the contract price for the additional products and services reflects the standalone selling price as adjusted for facts and circumstances applicable to that contract. In these cases, we account for the additional products or services as a separate contract. In other cases where the pricing in the modification does not reflect the standalone selling price as adjusted for facts and circumstances applicable to that contract, we account for the additional products or services as part of the existing contract on a prospective basis, on a cumulative catch-up basis, or a combination of both based on the nature of the modification. In instances where the pricing in the modification offers the customer a credit for a prior arrangement, we adjust our variable consideration reserves for returns and other concessions.
Right of return. Certain contracts contain a right of return that allows the customer to cancel all or a portion of the product or service and receive a credit. We estimate returns based on historical returns data which is constrained to an amount for which a material revenue reversal is not probable. We do not recognize revenue for products or services that are expected to be returned.
Research and development.   Research and development expense consists primarily of personnel costs for our engineers and third parties engaged in the design and development of our products, software and technologies, including salary, bonus and stock-based compensation expense, project material costs, services and depreciation. Such costs are charged to research and development expense as they are incurred.
Stock-based compensation expense.   We recognize compensation expense for time-based restricted stock units (“RSUs”) using the straight-line amortization method based on the fair value of RSUs on the date of grant. The fair value of RSUs is the closing market price of Broadcom common stock on the date of grant, reduced by the present value of dividends expected to be paid on Broadcom common stock prior to vesting. We recognize compensation expense for employee stock purchase plan rights under the Broadcom Inc. Employee Stock Purchase Plan, as amended (“ESPP”) based on the estimated grant-date fair value determined using the Black-Scholes valuation model with a straight-line amortization method.
Certain equity awards include both service and market conditions. The fair value of market-based awards is estimated on the date of grant using the Monte Carlo simulation technique. Compensation expense for market-based awards is amortized based upon a graded vesting method over the service period.
We estimate forfeitures expected to occur and recognize stock-based compensation expense for such awards expected to vest. We will recognize additional expense if actual forfeitures are lower than we estimated, and will recognize a benefit if actual forfeitures are higher than we estimated. Changes in the estimated forfeiture rates can have a significant effect on stock-based compensation expense since the effect of adjusting the rate is recognized in the period the forfeiture estimate is changed.
Shipping and handling costs.   Our shipping and handling costs charged to customers are included in net revenue and the associated expense is included in cost of revenue for all periods presented.
Litigation and settlement costs. We are involved in legal actions and other matters arising in our recent business acquisitions and in the normal course of business. We recognize an estimated loss contingency when the outcome is probable prior to issuance of the consolidated financial statements and we are able to reasonably estimate the amount or range of any possible loss.
Income taxes.   We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of
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deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. If we determine that we are able to realize our deferred income tax assets in the future in excess of their net carrying values, we adjust the valuation allowance and reduce the provision for income taxes or increase the benefit from income taxes. Likewise, if we determine that we are not able to realize all or part of our net deferred tax assets, we increase the provision for income taxes or decrease the benefit from income taxes in the period such determination is made.
We account for uncertainty in income taxes in accordance with the applicable accounting guidance on income taxes. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.
Net income per share. Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares outstanding include the dilutive effect of unvested RSUs and ESPP rights (together referred to as “equity awards”). Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.
The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for purchasing shares under the ESPP and the amount of compensation expense for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.
Recently Adopted Accounting Guidance. In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances disclosures about significant segment expenses. We adopted this standard in the fourth quarter of fiscal year 2025. See Note 13. “Segment Information” for additional information.

3. Revenue from Contracts with Customers
Reclassifications to Consolidated Statements of Operations
In fiscal year 2025, we included upfront license revenue of $ 7,800 million within products revenue in our consolidated statements of operations. To conform to the current year presentation, we reclassified $ 4,601 million and $ 1,058 million of upfront license revenue from subscriptions and services revenue to products revenue for fiscal years 2024 and 2023, respectively. We also reclassified the related costs for the upfront license revenue, which were immaterial, for the periods presented.
In the revenue disaggregation tables by type and by region presented below, we included $ 5,539 million, $ 559 million and $ 1,702 million of upfront license revenue in products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2025. To conform to the current year presentation, we reclassified $ 2,654 million, $ 650 million, and $ 1,297 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2024. We also reclassified $ 990 million, $ 9 million, and $ 59 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2023.
Disaggregation
We have considered (1) information that is regularly reviewed by our Chief Executive Officer, who has been identified as the chief operating decision maker (the “CODM”) as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues. The principal category we use to disaggregate revenues is the nature of our products and subscriptions and services, as presented in our consolidated statements of operations. In addition, revenues by reportable segment are presented in Note 13. “Segment Information.”
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The following tables present revenue disaggregated by type of revenue and by region for the periods presented:

Fiscal Year 2025
Americas Asia Pacific Europe, the Middle East and Africa Total

(In millions)
Products $ 7,908   $ 33,596   $ 3,343   $ 44,847  
Subscriptions and services
11,031   2,300   5,709   19,040  
Total $ 18,939   $ 35,896   $ 9,052   $ 63,887  

Fiscal Year 2024
Americas Asia Pacific Europe, the Middle East and Africa Total

(In millions)
Products $ 4,898   $ 26,869   $ 3,193   $ 34,960  
Subscriptions and services
10,072   1,553   4,989   16,614  
Total $ 14,970   $ 28,422   $ 8,182   $ 51,574  

Fiscal Year 2023
Americas Asia Pacific Europe, the Middle East and Africa Total

(In millions)
Products $ 3,591   $ 23,272   $ 2,086   $ 28,949  
Subscriptions and services
4,688   648   1,534   6,870  
Total $ 8,279   $ 23,920   $ 3,620   $ 35,819  

Although we recognize revenue for the majority of our products when title and control transfer in Penang, Malaysia, we disclose revenue by region based primarily on the geographic shipment location or delivery location specified by our distributors, original equipment manufacturer (“OEM”) customers, contract manufacturers, channel partners, or software customers.
Contract Balances
Contract assets and contract liabilities balances were as follows:
November 2,
2025 November 3,
2024

(In millions)
Contract Assets $ 8,922   $ 4,402  

Contract Liabilities $ 13,016   $ 14,495  

We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. We recognize a contract asset when revenue recognized on a contract exceeds the amount invoiced. A contract asset is a right to consideration that is conditional on something other than the passage of time. A contract asset becomes a receivable when invoiced upon the right to consideration becoming unconditional.
We recognize a contract liability when billings on a contract exceed the revenue recognized and there is a future obligation to transfer products or services to a customer. Changes in our contract assets and contract liabilities primarily result from the timing difference between our performance and the customer’s payment.
As of November 2, 2025 , approximately 67 % of contract liabilities related to contracts subject to termination for convenience provisions . The amount of revenue recognized during fiscal year 2025 that was included in the contract liabilities balance as of November 3, 2024 was $ 9,205  million. The amount of revenue recognized during fiscal year 2024 that was included in the contract liabilities balance as of October 29, 2023 was $ 2,440  million.
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Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. Remaining performance obligations include unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, but do not include contracts for software, subscriptions or services where the customer is not committed. The customer is not considered committed when the customer contract permits termination for convenience. Additionally, as a practical expedient, we have not included contracts that have an original duration of one year or less, nor have we included contracts with sales-based or usage-based royalties promised in exchange for a license of IP.
Certain multi-year customer contracts in our semiconductor solutions segment and infrastructure software segment, including contracts where customers do not have termination rights, contain firmly committed amounts and the remaining performance obligations under these contracts as of November 2, 2025 were approximately $ 33.3 billion. We expect approximately 35 % of this amount to be recognized as revenue over the next 12 months. For contracts with termination for convenience rights, our customers generally do not exercise those rights. Accordingly, our remaining performance obligations disclosed above are not indicative of revenue for future periods .

4. Acquisitions
Acquisition of VMware, Inc.
On November 22, 2023 , we completed the VMware Merger. Pursuant to the Agreement and Plan of Merger, each share of VMware common stock issued and outstanding immediately prior to the VMware Merger was indirectly converted into the right to receive, at the election of the holder of such share of VMware common stock, either $ 142.50 in cash or 2.52 shares of Broadcom common stock (on a split adjusted basis). The stockholder election was prorated, such that the total number of shares of VMware common stock entitled to receive cash and the total number of shares of VMware common stock entitled to receive Broadcom common stock, in each case, was equal to 50 % of the aggregate number of shares of VMware common stock issued and outstanding immediately prior to the VMware Merger. Based on the VMware stockholders’ elections, the VMware stockholders received approximately $ 30,788  million in cash and 544  million shares of Broadcom common stock with a fair value of $ 53,398  million.
We funded the cash portion of the VMware Merger with the net proceeds from the issuance of the 2023 Term Loans, as defined and discussed in Note 10. “Borrowings”, as well as cash on hand. We assumed $ 8,250  million of VMware’s outstanding senior unsecured notes.
Purchase Consideration

(In millions)

Fair value of Broadcom common stock issued for outstanding VMware common stock $ 53,398  
Cash paid for outstanding VMware common stock 30,788  
Cash paid by Broadcom to retire VMware’s term loan
1,257  
Fair value of partially vested assumed VMware equity awards
805  
Fair value of Broadcom common stock issued for accelerated VMware equity awards 23  
Cash paid for accelerated VMware equity awards
13  
Effective settlement of pre-existing relationships 6  
Total purchase consideration 86,290  
Less: cash acquired 6,642  
Total purchase consideration, net of cash acquired $ 79,648  

We assumed all outstanding VMware RSU awards and performance stock unit (“PSU”) awards held by continuing employees. The assumed awards were converted into RSU awards for shares of Broadcom common stock. All outstanding in-the-money VMware stock options and RSU awards held by non-employee directors were accelerated and converted into the right to receive cash and shares of Broadcom common stock, in equal parts.
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The following table presents our allocation of the total purchase price, net of cash acquired:

Fair Value

(In millions)

Trade accounts receivable
$ 3,571  
Inventory 15  
Assets held-for-sale
5,206  
Other current assets
757  
Property, plant and equipment
531  
Goodwill
54,206  
Intangible assets
45,572  
Other long-term assets
1,064  
Total assets acquired
110,922  
Accounts payable ( 359 )
Employee compensation and benefits ( 848 )
Current portion of long-term debt ( 1,264 )
Liabilities held-for-sale
( 1,901 )
Other current liabilities
( 11,041 )
Long-term debt
( 6,254 )
Other long-term liabilities
( 9,607 )
Total liabilities assumed
( 31,274 )
Fair value of net assets acquired
$ 79,648  

Goodwill is primarily attributable to the assembled workforce and anticipated synergies and economies of scale expected from the integration of the VMware business. The synergies include certain cost savings, operating efficiencies and other strategic benefits projected to be achieved as a result of the VMware Merger. Goodwill is not deductible for tax purposes.
Assets and liabilities held-for-sale primarily included the end-user computing (“EUC”) business and certain other assets and liabilities, which were not aligned with our strategic objectives. On July 1, 2024, we sold the EUC business to KKR & Co. Inc. for cash consideration of $ 3.5 billion , after working capital adjustments . We do not have any material continuing involvement with this business and have presented its results in discontinued operations.
Our results of continuing operations included $ 12,384 million of net revenue attributable to VMware for fiscal year 2024 . It is impracticable to determine the effect on net income attributable to VMware as we immediately integrated VMware into our ongoing operations. Transaction costs related to the VMware Merger of $ 255 million were included in selling, general and administrative expense for fiscal year 2024 .
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Intangible Assets

Fair Value
Weighted-Average Amortization Periods

(In millions)
(In years)

Developed technology $ 24,156   8
Customer contracts and related relationships 15,239   8
Trade name
1,205   14
Off-market component of customer contracts
242   2
Total identified finite-lived intangible assets 40,842  
IPR&D
4,730   N/A
Total identified intangible assets $ 45,572  

Developed technology relates to products used for VMware cloud foundation, application management, security, application networking and security, and software-defined edge. We valued the developed technology using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period.
Customer contracts and related relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of VMware. Customer contracts and related relationships were valued using the with-and-without-method under the income approach. In the with-and-without method, the fair value was measured by the difference between the present values of the cash flows with and without the existing customers in place over the period of time necessary to reacquire the customers. The economic useful life was determined by evaluating many factors, including the useful life of other intangible assets, the length of time remaining on the acquired contracts and the historical customer turnover rates.
Trade name relates to the “VMware” trade name. The fair value was determined by applying the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue under the trade name. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecast period.
Off-market component of customer contracts relate to rebates and marketing development funds provided to customers prior to the VMware Merger. We valued these contracts based on their remaining unamortized balances, which approximate their fair value. The economic useful life was determined based on the remaining terms of customer contracts.
The fair value of IPR&D was determined using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the IPR&D, less charges representing the contribution of other assets to those cash flows.
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The following table presents the details of IPR&D by category as of the date of the VMware Merger:

Description IPR&D Percentage of Completion Estimated Cost to Complete Expected Release Date
(By Fiscal Year)

(Dollars in millions)

VMware cloud foundation July 2024 releases
$ 790   67   % $ 38   2024 (a)

VMware cloud foundation March 2025 releases
$ 2,900   58   % $ 185   2025 (b)

VMware cloud foundation July 2025 releases
$ 750   43   % $ 65   2025 (c)

VMware cloud foundation networking and security virtualization
$ 265   21   % $ 59   2024 (a)

Application networking and security
$ 25   21   % $ 47   2024 (a)

____________________________
(a) Released during fiscal year 2024.
(b) $ 1,520 million and $ 1,380 million were released during fiscal years 2025 and 2024, respectively.
(c) Expected to be released during the first half of the fiscal year ending November 1, 2026 .
VMware cloud foundation is a private cloud platform that integrates compute, storage, networking, and management into a single solution and provides license portability. It enables customers to modernize infrastructure and accelerate developer productivity with greater resilience and security.
We believe the amounts of purchased intangible assets recorded above represent the fair values of, and approximate the amounts a market participant would pay for, these intangible assets as of the date of the VMware Merger.
Unaudited Pro Forma Information
The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if VMware had been acquired as of the beginning of fiscal year 2023. The unaudited pro forma information includes adjustments to amortization for intangible assets acquired, stock-based compensation expense, interest expense for acquisition financing, amortization of deferred assets and liabilities, and depreciation for property and equipment acquired. The unaudited pro forma information presented below is for informational purposes only and is not necessarily indicative of our consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2023 or of the results of our future operations of the combined business.

Fiscal Year

2024 2023

(In millions)

Pro forma net revenue $ 52,188   $ 48,227  
Pro forma net income
$ 6,473   $ 8,215  

Acquisition of Seagate’s SoC Operations
On April 23, 2024, we acquired certain assets related to the design, development, and manufacture of System-on-Chip (“SoC”) operations of Seagate Technology Holdings plc for $ 600 million . We acquired these assets to strengthen our portfolio of SoC products.
The following table presents our allocation of the total purchase price. Goodwill is allocated to the semiconductor solutions segment and is deductible for tax purposes.

Fair Value

(In millions)

Intangible assets
$ 570  
Goodwill
14  
Other assets
16  
Total assets acquired $ 600  

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Intangible Assets

Fair Value
Weighted-Average Amortization Periods

(In millions)
(In years)

Customer contracts and related relationships
$ 410   11
Developed technology
90   11
Total identified finite-lived intangible assets 500  
IPR&D
70   N/A
Total identified intangible assets $ 570  

Customer contracts and related relationships represent the fair value of future projected revenue that will be derived from sales of SoC controller products for hard disk drive applications . Customer contracts and related relationships were valued using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the customer contracts and related relationships less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the useful lives of other intangible assets and the length of time remaining on the acquired contracts .
Developed technology relates to SoC controller products for hard disk drive applications. We valued the developed technology using the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue under the developed technology. The economic useful life was determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period.
The fair value of IPR&D was determined using the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue from the IPR&D.

5. Supplemental Financial Information
Cash Equivalents
Cash equivalents included $ 3,163 million and $ 1,716 million of time deposits and $ 2,239 million and $ 1,171 million of money-market funds as of November 2, 2025 and November 3, 2024, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds, which was consistent with their carrying value, was determined using unadjusted prices in active, accessible markets for identical assets, and as such, they were classified as Level 1 assets in the fair value hierarchy.
Accounts Receivable Factoring
We sell certain of our trade accounts receivable on a non-recourse basis to third-party financial institutions pursuant to factoring arrangements. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the consolidated statements of cash flows . Total trade accounts receivable sold under the factoring arrangements were $ 7,401 million, $ 5,900 million and $ 3,975 million during fiscal years 2025, 2024 and 2023, respectively. Factoring fees for the sales of receivables were recorded in other income, net and were not material for any of the periods presented.
Inventory

November 2,
2025 November 3,
2024

(In millions)
Finished goods $ 682   $ 504  
Work-in-process 1,280   970  
Raw materials 308   286  
Total inventory $ 2,270   $ 1,760  

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Property, Plant and Equipment, Net

November 2,
2025 November 3,
2024

(In millions)
Land $ 204   $ 204  
Construction in progress 78   57  
Buildings and leasehold improvements 1,488   1,518  
Machinery and equipment 5,656   5,246  
Total property, plant and equipment 7,426   7,025  
Accumulated depreciation and amortization ( 4,896 ) ( 4,504 )
Total property, plant and equipment, net $ 2,530   $ 2,521  

Depreciation expense was $ 574  million, $ 593  million and $ 502  million for fiscal years 2025, 2024 and 2023, respectively.
Other Current Assets

November 2,
2025 November 3,
2024

(In millions)
Current portion of contract assets $ 5,005   $ 1,916  
Prepaid expenses 518   1,391  
Other 457   764  
Total other current assets $ 5,980   $ 4,071  

Other Current Liabilities

November 2,
2025 November 3,
2024

(In millions)
Contract liabilities $ 9,469   $ 9,395  
Tax liabilities 921   720  
Interest payable 620   535  
Other 663   1,143  
Total other current liabilities $ 11,673   $ 11,793  

Other Long-Term Liabilities

November 2,
2025 November 3,
2024

(In millions)
Contract liabilities $ 3,547   $ 5,100  
Deferred tax liabilities
2,704   4,703  
Unrecognized tax benefits, interest and penalties 1,628   3,669  
Other 1,423   1,503  
Total other long-term liabilities $ 9,302   $ 14,975  

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Other Income, Net

Fiscal Year
2025 2024 2023

(In millions)
Interest income $ 347   $ 461   $ 535  
Other income 210   21   15  
Gain (loss) on investments ( 17 ) ( 12 ) 11  
Other expense ( 85 ) ( 64 ) ( 49 )

Other income, net
$ 455   $ 406   $ 512  

Other income and other expense include gains on sales of businesses, foreign exchange gains and losses, factoring fees for the sales of receivables, and other miscellaneous items.
Discontinued Operations
During fiscal year 2024, we sold the EUC business for $ 3.5 billion, after working capital adjustments. In connection with the sale, we agreed to provide transitional services to the buyer on a short-term basis. We do not have any material continuing involvement with this business and have presented its results in discontinued operations.
The following table summarizes the selected financial information of discontinued operations:

Fiscal Year
2024

(In millions)
Net revenue $ 858  

Loss from discontinued operations before income taxes
$ ( 12 )

Provision for income taxes
( 261 )
Loss from discontinued operations, net of income taxes
$ ( 273 )

6. Leases
We have operating leases for our facilities, land, data centers and certain equipment. Operating lease expense was $ 182  million, $ 187  million and $ 91  million for fiscal years 2025, 2024 and 2023, respectively.
Other operating lease information, which included the impact of VMware leases acquired on November 22, 2023, was as follows:

Fiscal Year
2025 2024 2023
(In millions)
Cash paid for leases included in operating cash flows
$ 277   $ 223   $ 90  

ROU assets obtained in exchange for lease liabilities
$ 220   $ 1,165   $ 28  

November 2,
2025 November 3,
2024
Weighted-average remaining lease term (in years)
11 11
Weighted-average discount rate
4.78   % 5.31   %

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Supplemental balance sheet information related to operating leases was as follows:

Classification on the Consolidated Balance Sheets November 2,
2025 November 3,
2024
(In millions)
ROU assets
Other long-term assets $ 1,318   $ 1,325  
Short-term lease liabilities
Other current liabilities $ 144   $ 207  
Long-term lease liabilities
Other long-term liabilities $ 1,181   $ 1,143  

Future minimum operating lease payments under non-cancelable leases as of November 2, 2025 were as follows:

(In millions)
2026 $ 212  
2027 196  
2028 168  
2029 144  
2030 128  
Thereafter 877  
Total undiscounted liabilities 1,725  
Less: interest ( 400 )
Present value of lease liabilities $ 1,325  

7. Goodwill and Intangible Assets
Goodwill

Semiconductor Solutions Infrastructure Software Total

(In millions)
Balance as of October 29, 2023 $ 26,001   $ 17,652   $ 43,653  
Acquisition of VMware —   54,206   54,206  
Acquisition of Seagate's SoC operations 14   —   14  
Balance as of November 3, 2024 26,015   71,858   97,873  
Sales of businesses ( 2 ) ( 70 ) ( 72 )
Balance as of November 2, 2025 $ 26,013   $ 71,788   $ 97,801  

During the fourth quarter of fiscal years 2025, 2024 and 2023, we completed our annual impairment assessments and concluded that goodwill was not impaired in any of these years.
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Intangible Assets

Gross Carrying
Amount Accumulated
Amortization Net Book
Value

(In millions)
As of November 2, 2025:      
Purchased technology $ 32,781   $ ( 14,401 ) $ 18,380  
Customer contracts and related relationships 15,791   ( 4,003 ) 11,788  
Trade names 1,612   ( 399 ) 1,213  
Other 186   ( 114 ) 72  
Intangible assets subject to amortization 50,370   ( 18,917 ) 31,453  
IPR&D 820   —  820  
Total $ 51,190   $ ( 18,917 ) $ 32,273  

As of November 3, 2024:      
Purchased technology $ 35,467   $ ( 12,551 ) $ 22,916  
Customer contracts and related relationships 16,186   ( 2,271 ) 13,915  
Trade names 1,720   ( 369 ) 1,351  
Other 166   ( 105 ) 61  
Intangible assets subject to amortization 53,539   ( 15,296 ) 38,243  
IPR&D 2,340   —  2,340  
Total $ 55,879   $ ( 15,296 ) $ 40,583  

Based on the amount of intangible assets subject to amortization at November 2, 2025, the expected amortization expense for each of the next five fiscal years and thereafter was as follows:

Fiscal Year: Expected Amortization Expense

(In millions)
2026 $ 7,880  
2027 6,805  
2028 5,673  
2029 4,547  
2030 3,365  
Thereafter 3,183  
Total $ 31,453  

The weighted-average remaining amortization periods by intangible asset category were as follows:

Amortizable intangible assets: November 2,
2025

(In years)
Purchased technology 6
Customer contracts and related relationships 6
Trade names 11
Other 11

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8. Net Income Per Share

Fiscal Year
2025 2024 2023

(In millions, except per share data)
Numerator:
Income from continuing operations
$ 23,126   $ 6,168   $ 14,082  

Loss from discontinued operations, net of income taxes
—   ( 273 ) —  
Net income
$ 23,126   $ 5,895   $ 14,082  

Denominator:
Weighted-average shares outstanding - basic 4,712   4,624   4,149  
Dilutive effect of equity awards 141   154   123  
Weighted-average shares outstanding - diluted 4,853   4,778   4,272  

Basic income per share:

Income per share from continuing operations
$ 4.91   $ 1.33   $ 3.39  
Loss per share from discontinued operations
—   ( 0.06 ) —  
Net income per share
$ 4.91   $ 1.27   $ 3.39  

Diluted income per share:

Income per share from continuing operations
$ 4.77   $ 1.29   $ 3.30  
Loss per share from discontinued operations
—   ( 0.06 ) —  
Net income per share
$ 4.77   $ 1.23   $ 3.30  

9. Retirement Plans
Defined Benefit Pension Plans
The U.S. defined benefit pension plans primarily consist of a qualified pension plan. Benefits of the qualified pension plan are provided under an adjusted career-average-pay program, a cash-balance program or a dollar-per-month program. Benefit accruals under this plan were frozen in 2009. Participants in the adjusted career-average-pay program no longer earn service accruals. Participants in the cash-balance program no longer earn service accruals, but continue to earn 4 % interest per year on their cash-balance accounts. There are no active participants under the dollar-per-month program.
For certain non-U.S. countries, we also have defined benefit pension plans for eligible employees. Eligibility is generally determined based on the terms of our plans and local statutory requirements.
Net Periodic Benefit Cost

Fiscal Year
2025 2024 2023

(In millions)
Service cost $ 13   $ 17   $ 8  
Interest cost 56   63   60  
Expected return on plan assets ( 53 ) ( 60 ) ( 59 )
Other
( 3 ) ( 2 ) —  
Net periodic benefit cost $ 13   $ 18   $ 9  

Net actuarial (gain) loss $ ( 1 ) $ ( 3 ) $ 20  

The components of net periodic benefit cost other than the service cost are included in other income, net and service cost is recognized in operating expenses in the consolidated statements of operations.
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Benefit Obligations and Plan Assets

  Pension Benefits
November 2,
2025 November 3,
2024

(In millions)
Change in plan assets:    
Fair value of plan assets — beginning of period $ 1,158   $ 1,105  
Actual return on plan assets 120   123  
Employer contributions 28   21  
Plan participants’ contributions
1   1  
Benefit payments
( 107 ) ( 108 )

Plan assets acquired in VMware acquisition
—   18  
Foreign currency impact ( 3 ) ( 2 )
Fair value of plan assets — end of period 1,197   1,158  
Change in benefit obligations:    
Benefit obligations — beginning of period 1,194   1,101  
Service cost 13   17  
Interest cost 56   63  
Actuarial loss
86   65  
Plan participants’ contributions
1   1  
Benefit payments ( 107 ) ( 108 )
Curtailments ( 4 ) ( 13 )

Benefit obligations assumed in VMware acquisition
—   72  
Foreign currency impact ( 3 ) ( 4 )
Benefit obligations — end of period 1,236   1,194  

Underfunded status of benefit obligations (a)
$ ( 39 ) $ ( 36 )

Actuarial losses and prior service costs recognized in accumulated other comprehensive income, net of taxes
$ ( 111 ) $ ( 106 )

_______________________________
(a) Substantially all amounts recognized on the consolidated balance sheets were recorded in other long-term assets and other long-term liabilities for all periods presented.
Plans with benefit obligations less than plan assets:

November 2,
2025 November 3,
2024

(In millions)
Projected benefit obligations $ 136   $ 1,064  
Accumulated benefit obligations $ 135   $ 1,063  
Fair value of plan assets $ 193   $ 1,118  

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Plans with benefit obligations in excess of plan assets:

November 2,
2025 November 3,
2024

(In millions)
Projected benefit obligations $ 1,100   $ 130  
Accumulated benefit obligations $ 1,066   $ 99  
Fair value of plan assets $ 1,004   $ 40  

The fair value of pension plan assets as of November 2, 2025 and November 3, 2024 included $ 299 million and $ 229 million, respectively, of assets for our non-U.S. pension plans.
The projected benefit obligations as of November 2, 2025 and November 3, 2024 included $ 329 million and $ 260 million, respectively, of obligations related to our non-U.S. pension plans. The accumulated benefit obligations as of November 2, 2025 and November 3, 2024 included $ 294 million and $ 229 million, respectively, of obligations related to our non-U.S. pension plans.
Expected Future Benefit Payments

Fiscal Years: Expected Benefit Payments

(In millions)
2026 $ 102  
2027 $ 96  
2028 $ 95  
2029 $ 94  
2030 $ 92  
2031-2035 $ 423  

Investment Policy
Plan assets of the U.S. qualified pension plan, which represent substantially all of the plan assets, are generally invested in funds held by third-party fund managers. Our benefit plan investment committee has set the investment strategy to fully match the liability. We direct the overall portfolio allocation and use a third-party investment consultant that has the discretion to structure portfolios and select the investment managers within those allocation parameters. Multiple investment managers are utilized, including both active and passive management approaches. The plan assets are invested using the liability-driven investment strategy intended to minimize market and interest rate risks, and those assets are periodically rebalanced toward asset allocation targets.
The target asset allocation for the U.S. qualified pension plan reflects a risk/return profile that we believe is appropriate relative to the liability structure and return goals for the plan. We periodically review the allocation of plan assets relative to alternative allocation models to evaluate the need for adjustments based on forecasted liabilities and plan liquidity needs. For both fiscal years 2025 and 2024, 100 % of the U.S. qualified pension plan assets were allocated to fixed income, in line with the target allocation. The fixed income allocation is primarily directed toward long-term core bond investments, with smaller allocations to Treasury Inflation-Protected Securities and high-yield bonds.
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Fair Value Measurement of Plan Assets

November 2, 2025
Fair Value Measurements at Reporting Date Using
Level 1 Level 2 Total

(In millions)
Cash equivalents $ 17   (a)
$ —   $ 17  
Equity securities:

Non-U.S. equity securities 40   (b)
—   40  
Fixed-income securities:
U.S. treasuries —   116   (c)
116  
Corporate bonds —   820   (c)
820  

Municipal bonds —   18   (c)
18  
Government bonds —   47   (c)
47  

Plan assets measured by fair value hierarchy
$ 57   $ 1,001   1,058  
Plan assets measured at net asset value
139   (d)

Total plan assets
$ 1,197  

November 3, 2024
Fair Value Measurements at Reporting Date Using
Level 1 Level 2 Total

(In millions)
Cash equivalents $ 17   (a)
$ —   $ 17  
Equity securities:

Non-U.S. equity securities 83   (b)
—   83  
Fixed-income securities:
U.S. treasuries —   184   (c)
184  
Corporate bonds —   715   (c)
715  

Municipal bonds —   22   (c)
22  
Government bonds —   14   (c)
14  
Asset-backed securities —   1   (c)
1  
Plan assets measured by fair value hierarchy
$ 100   $ 936   1,036  
Plan assets measured at net asset value
122   (d)

Total plan assets
$ 1,158  

______________________________
(a) Cash equivalents primarily included short-term investment funds which consisted of short-term money market instruments that were valued based on quoted prices in active markets .
(b) These equity securities were valued based on quoted prices in active markets.
(c) These amounts consisted of investments that were traded less frequently than Level 1 securities and were valued using inputs that included quoted prices for similar assets in active markets and inputs other than quoted prices that were observable for the assets, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that were observable at commonly quoted intervals.
(d) Plan assets measured at fair value using net asset value as a practical expedient were excluded from the fair value hierarchy .
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Assumptions
The assumptions used to determine the benefit obligations and net periodic benefit cost for our defined benefit pension plans are presented in the table below. The expected long-term return on assets shown in the table below represents an estimate of long-term returns on investment portfolios primarily consisting of combinations of debt, equity and other investments, depending on the plan. The long-term rates of return are then weighted based on the asset classes in which the pension funds are invested. Discount rates reflect the current rate at which defined benefit pension obligations could be settled based on the measurement dates of the plans, which is October 31, the month end closest to our fiscal year end. The range of assumptions reflects the different economic environments within various countries.

Assumptions for Benefit Obligations
as of Assumptions for Net Periodic Benefit Cost
Fiscal Year
November 2,
2025 November 3,
2024 2025 2024 2023

Discount rate 1.00 %- 6.75 %
1.75 %- 6.75 %
1.75 %- 6.75 %
1.75 %- 7.10 %
1.25 %- 7.25 %

Average increase in compensation levels 1.50 %- 8.85 %
2.00 %- 8.80 %
2.00 %- 8.85 %
2.00 %- 8.80 %
2.00 %- 10.00 %

Expected long-term return on assets N/A N/A 2.50 %- 6.75 %
2.50 %- 7.25 %
2.50 %- 7.00 %

Defined Contribution Plans
Our eligible U.S. employees participate in a company-sponsored 401(k) plan. Under the plan, we match employee contributions dollar for dollar up to 6 % of their eligible earnings. All matching contributions vest immediately. During fiscal years 2025, 2024 and 2023, we made contributions of $ 174 million, $ 210 million and $ 100 million, respectively, to the 401(k) plan. The increase in fiscal year 2024 was due to the VMware Merger.
In addition, other eligible employees outside of the U.S. receive retirement benefits under various defined contribution retirement plans.
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10. Borrowings

Effective Interest Rate November 2,
2025 November 3,
2024

(Dollars in millions)

September 2025 Senior Notes

4.200 % notes due October 2030
4.34   % $ 1,000   $ —  
4.800 % notes due February 2036
4.90   % 2,250   —  
4.900 % notes due February 2038
4.99   % 1,750   —  
5,000   —  
July 2025 Senior Notes

4.600 % notes due July 2030
4.49   % (a)
1,750   —  
4.900 % notes due July 2032
5.04   % 1,750   —  
5.200 % notes due July 2035
4.77   % (a)
2,500   —  
6,000   —  
January 2025 Senior Notes

4.800 % notes due April 2028
5.03   % 1,100   —  
5.050 % notes due April 2030
5.20   % 800   —  
5.200 % notes due April 2032
5.34   % 1,100   —  
3,000   —  
October 2024 Senior Notes

4.150 % notes due February 2028
4.36   % 875   875  
4.350 % notes due February 2030
4.51   % 1,500   1,500  
4.550 % notes due February 2032
4.70   % 875   875  
4.800 % notes due October 2034
4.38   % (a)
1,750   1,750  
5,000   5,000  
July 2024 Senior Notes

5.050 % notes due July 2027
5.27   % 1,250   1,250  
5.050 % notes due July 2029
5.23   % 2,250   2,250  
5.150 % notes due November 2031
5.30   % 1,500   1,500  
5,000   5,000  
April 2022 Senior Notes

4.000 % notes due April 2029
4.17   % 750   750  
4.150 % notes due April 2032
4.30   % 1,200   1,200  
4.926 % notes due May 2037
5.33   % 2,500   2,500  
4,450   4,450  
September 2021 Senior Notes

3.137 % notes due November 2035
4.23   % 3,250   3,250  
3.187 % notes due November 2036
4.79   % 2,750   2,750  
6,000   6,000  
March 2021 Senior Notes

3.419 % notes due April 2033
4.66   % 2,250   2,250  
3.469 % notes due April 2034
4.63   % 3,250   3,250  
5,500   5,500  

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Effective Interest Rate November 2,
2025 November 3,
2024

(Dollars in millions)

January 2021 Senior Notes

1.950 % notes due February 2028
2.10   % 750   750  
2.450 % notes due February 2031
2.56   % 2,750   2,750  
2.600 % notes due February 2033
2.70   % 1,750   1,750  
3.500 % notes due February 2041
3.60   % 3,000   3,000  
3.750 % notes due February 2051
3.84   % 1,750   1,750  
10,000   10,000  
June 2020 Senior Notes

3.459 % notes due September 2026
4.19   % 752   752  
4.110 % notes due September 2028
5.02   % 1,118   1,118  
1,870   1,870  
May 2020 Senior Notes

3.150 % notes due November 2025
3.29   % 900   900  
4.150 % notes due November 2030
4.27   % 1,856   1,856  
4.300 % notes due November 2032
4.39   % 2,000   2,000  
4,756   4,756  
April 2020 Senior Notes

5.000 % notes due April 2030
5.18   % 606   606  

April 2019 Senior Notes

4.750 % notes due April 2029
4.95   % 1,655   1,655  

2017 Senior Notes

3.125 % notes due January 2025
3.23   % —   495  
3.875 % notes due January 2027
4.02   % —   2,922  
3.500 % notes due January 2028
3.60   % 777   777  
777   4,194  
Assumed VMware Senior Notes

4.500 % notes due May 2025
5.81   % —   750  
1.400 % notes due August 2026
5.60   % 1,500   1,500  
4.650 % notes due May 2027
5.60   % —   500  
3.900 % notes due August 2027
5.50   % 1,250   1,250  
1.800 % notes due August 2028
5.44   % 750   750  
4.700 % notes due May 2030
5.75   % 750   750  
2.200 % notes due August 2031
5.74   % 1,500   1,500  
5,750   7,000  
Assumed CA Senior Notes

4.700 % notes due March 2027
5.15   % —   215  

Other senior notes

4.500 % notes due August 2034
4.55   % 6   6  

Total senior notes outstanding
65,370   56,252  

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Effective Interest Rate November 2,
2025 November 3,
2024

(Dollars in millions)

4.540 % term loan due May 2028
4.59   % 1,000   —  

4.489 % term loan due May 2028
4.55   % 750   —  

2023 Term Loans - floating rate
SOFR plus 1.125 % term loan due November 2026
6.23   % —   5,595  
SOFR plus 1.125 % term loan due November 2028
5.63   % —   8,000  
—   13,595  

Total term loans outstanding
1,750   13,595  

Total debt principal outstanding
$ 67,120   $ 69,847  

Current portion of principal amount outstanding $ 3,152   $ 1,245  
Short-term finance lease liabilities —   26  
Total short-term debt
$ 3,152   $ 1,271  

Non-current portion of principal amount outstanding $ 63,968   $ 68,602  
Long-term finance lease liabilities —   13  
Unamortized discount and issuance costs ( 1,984 ) ( 2,320 )
Total long-term debt $ 61,984   $ 66,295  
    
______________________________
(a) In addition to contractual interest, discount and issuance costs, the effective interest rate also includes reclassification of the cumulative gain from derivatives. See Note 2. "Summary of Significant Accounting Policies" for additional information for derivative instruments.
The senior notes and term loans are recorded net of discount and issuance costs, which are amortized to interest expense over the respective terms of such instruments.
Senior Notes
We may redeem or purchase, in whole or in part, any of our senior notes prior to their respective maturities, subject to a specified make-whole premium determined in accordance with the indentures governing the respective notes, plus accrued and unpaid interest. With the exception of the senior notes issued in September 2025, in the event of a change in control, note holders will have the right to require us to repurchase their notes at a price equal to 101 % of the principal amount of such notes, plus accrued and unpaid interest. Each series of the senior notes pays interest semi-annually.
During fiscal year 2025, we issued senior unsecured notes for an aggregate principal amount of $ 3.0 billion in January 2025, $ 6.0 billion in July 2025, and $ 5.0 billion in September 2025. We repaid and redeemed a total of $ 4,882 million of senior notes.
Fixed-Rate Term Loans
We entered into a $ 750 million three-year term loan at a 4.489 % fixed rate on May 2, 2025 and a $ 1.0 billion three-year term loan at a 4.540 % fixed rate on May 9, 2025. Interest on the term loans is due quarterly. We are permitted to prepay the term loans at any time, subject to a specified make-whole premium determined in accordance with the credit agreements governing the respective term loans, plus accrued and unpaid interest.
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2025 Credit Agreement
In January 2025, we entered into a credit agreement (the “2025 Credit Agreement”), which provides for a five-year $ 7.5 billion unsecured revolving credit facility, of which $ 500 million is available for the issuance of multi-currency letters of credit. The issuance of letters of credit under the revolving credit facility would reduce the aggregate amount otherwise available under such facility for revolving loans. Subject to the terms of the 2025 Credit Agreement, we are permitted to borrow, repay and reborrow revolving loans at any time prior to the earlier of (a) January 13, 2030 or (b) the date that the commitments are terminated either at our request or, if an event of default occurs, by the lenders. In connection with the 2025 Credit Agreement, we terminated the credit agreement entered into in January 2021, which provided for a five-year $ 7.5 billion unsecured revolving credit facility. We had no borrowings outstanding under our revolving credit facility at either November 2, 2025 or November 3, 2024.
Commercial Paper
In January 2025, we increased the maximum amount of our commercial paper program, pursuant to which we may issue unsecured commercial paper notes in an aggregate principal amount of up to $ 4.0 billion outstanding at any time with maturities of up to 397 days from the date of issue. Commercial paper is sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of issuance. The discount associated with the commercial paper is amortized to interest expense over its term. We had no commercial paper outstanding at either November 2, 2025 or November 3, 2024.
2023 Term Loans
On August 15, 2023, we entered into a credit agreement (the “2023 Credit Agreement”), which provided us with the ability to borrow term loans in connection with the VMware Merger. Upon completion of the VMware Merger, we entered a series of unsecured facilities for an aggregate principal amount of $ 30,390 million (the “2023 Term Loans”). The 2023 Term Loans bore interest, payable monthly or every three months at our election, at floating interest rates tied to the Secured Overnight Financing Rate (“SOFR”). Subject to the terms of the 2023 Credit Agreement, we were permitted to v oluntarily make prepayments of the term loans without penalty. During fiscal year 2025, we repaid the remaining $ 13,595 million of 2023 Term Loans and terminated the 2023 Credit Agreement. As a result of these repayments, we wrote off unamortized discount and issuance costs of $ 118 million, which were included in interest expense in the consolidated statements of operations.
Fair Value of Debt
As of November 2, 2025, the estimated aggregate fair value of our debt was $ 64,609 million which was determined using quoted prices from less active markets or other observable inputs. All of our debt obligations are categorized as Level 2 instruments.
Future Principal Payments of Debt
The future scheduled principal payments of debt as of November 2, 2025 were as follows:

Fiscal Year: Future Scheduled Principal Payments
(In millions)
2026 $ 3,152  
2027 2,500  
2028 7,120  
2029 4,655  
2030 6,406  
Thereafter 43,287  
Total $ 67,120  

    As of November 2, 2025 and November 3, 2024, we were in compliance with all debt covenants.
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11. Stockholders’ Equity
Cash Dividends Declared and Paid

Fiscal Year
2025 2024 2023

(In millions, except per share data)
Dividends per share to common stockholders $ 2.360   $ 2.105   $ 1.840  
Dividends to common stockholders $ 11,142   $ 9,814   $ 7,645  

Stock Repurchase Programs
In April 2025, our Board of Directors authorized a stock repurchase program to repurchase up to $ 10 billion of our common stock from time to time through December 31, 2025, which was extended to December 31, 2026 subsequent to fiscal year 2025 . During fiscal year 2025, we repurchased and retired 16  million shares of our common stock for $ 2,450 million with a $ 7,550 million remaining authorized amount available for future purchases as of November 2, 2025. Repurchases under this stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.
In December 2021 and May 2022, our Board of Directors authorized stock repurchase programs to repurchase up to an aggregate of $ 20 billion of our common stock from time to time through December 31, 2023. During fiscal years 2024 and 2023, we repurchased and retired 67  million and 91  million shares of our common stock for $ 7,176  million and $ 5,824  million, respectively. All $ 20 billion of the aggregate authorized amount was utilized prior to expiration on December 31, 2023.
Equity Incentive Award Plans
2012 Plan
Under the Broadcom Inc. 2012 Stock Incentive Plan (the “2012 Plan”), we may grant stock options and stock appreciation rights with an exercise price that is no less than the fair market value on the date of grant, restricted stock awards, and RSUs to employees. No participant may be granted such awards for more than an aggregate of 40 million shares in any fiscal year. Equity awards granted generally vest over four years . The total shares authorized for issuance under the 2012 Plan are 450 million. Awards cancelled or forfeited and shares withheld to satisfy tax withholding obligations become available for future issuance. As of November 2, 2025, 299 million shares remained available for issuance under the 2012 Plan.
We may grant market-based RSUs with both a service condition and a market condition as part of our equity compensation programs. The market-based RSUs generally vest over four years , subject to satisfaction of market conditions. During fiscal years 2025, 2024 and 2023, we granted market-based RSUs under which grantees may receive the number of shares ranging from 0 % to 200 % of the original grant at vesting based upon the total stockholder return (“TSR”) on our common stock on an absolute basis and as compared to the TSR of an index group of companies. During fiscal year 2023, we also granted market-based RSUs vesting over five years , subject to satisfaction of stock price performance milestones.
2007 Plan
In connection with the VMware Merger, we assumed the VMware, Inc. Amended and Restated 2007 Equity and Incentive Plan (the “2007 Plan”) and outstanding unvested RSU awards and PSU awards originally granted by VMware under the 2007 Plan that were held by continuing employees. These assumed awards were converted into approximately 46 million Broadcom RSUs and will vest in accordance with their original terms, generally over four years . Under the 2007 Plan, we may grant stock options and stock appreciation rights with an exercise price that is no less than the fair market value on the date of grant, restricted stock, RSUs, and other stock-based or cash-based awards to employees. Equity awards granted under the 2007 Plan following the VMware Merger are expected to be on similar terms and consistent with similar grants made pursuant to the 2012 Plan. Awards cancelled or forfeited and shares withheld to satisfy tax withholding obligations become available for future issuance. As of November 2, 2025, 33 million shares remained available for issuance under the 2007 Plan.
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Employee Stock Purchase Plan
The ESPP provides eligible employees with the opportunity to acquire an ownership interest in us through periodic payroll deductions, based on a 6 -month look-back period, at a price equal to the lesser of 85 % of the fair market value of our common stock at either the beginning or the end of the relevant offering period. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986. However, the ESPP is not intended to be a qualified pension, profit sharing or stock bonus plan under Section 401(a) of the Internal Revenue Code of 1986 and is not subject to the provisions of the Employee Retirement Income Security Act of 1974.
Stock-Based Compensation Expense

  Fiscal Year
2025 2024 2023

(In millions)
Cost of products sold $ 218   $ 119   $ 88  
Cost of subscriptions and services 626   545   122  
Research and development 5,020   3,460   1,513  
Selling, general and administrative 1,704   1,546   448  
Total stock-based compensation expense (a)
$ 7,568   $ 5,670   $ 2,171  

Estimated income tax benefits for stock-based compensation $ 1,278   $ 991   $ 367  
Excess income tax benefits for stock-based awards exercised or released $ 2,186   $ 1,296   $ 507  

_____________________________
(a) Does not include stock-based compensation expense related to discontinued operations recognized during fiscal year 2024, which was included in loss from discontinued operations, net of income taxes in our consolidated statement of operations.
Stock-based compensation expense for fiscal years 2025 and 2024 included $ 479 million and $ 1,613 million, respectively, related to equity awards assumed in connection with the VMware Merger.
During the second quarter of fiscal year 2025, we granted two-year time- and market-based RSU awards (the “Two-Year Equity Awards”) in lieu of our annual employee equity awards historically granted in the second quarter of each fiscal year. Each of the Two-Year Equity Awards vests on the same basis as two annual grants with staggered vesting start dates of March 15, 2025 and March 15, 2026 and successive four -year vesting periods. We recognize stock-based compensation expense related to these awards from the grant date through their respective vesting date, ranging from four to five years . Stock-based compensation expense related to the Two-Year Equity Awards was $ 2,846 million for fiscal year 2025.
As of November 2, 2025, the total unrecognized compensation cost related to unvested stock-based awards was $ 23,833 million, which is expected to be recognized over the remaining weighted-average service period of 3.4 years.
The following table summarizes the weighted-average assumptions utilized to calculate the fair value of market-based awards granted in the periods presented:

Fiscal Year
2025 2024 2023
Risk-free interest rate 4.0   % 4.2   % 4.0   %
Dividend yield 1.2   % 1.7   % 3.3   %
Volatility 39.1   % 32.0   % 32.8   %
Expected term (in years) 4.4 3.6 4.8

The risk-free interest rate was derived from the average U.S. Treasury Strips rate, which approximated the rate in effect appropriate for the term at the time of grant.
The dividend yield was based on the historical and expected dividend payouts as of the respective award grant dates.
The volatility was based on our own historical stock price volatility over the period commensurate with the expected life of the awards and the implied volatility of a 180-day call option on our own common stock measured at a specific date.
The expected term was commensurate with the awards’ contractual terms.
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Restricted Stock Unit Awards
A summary of RSU activity was as follows:

Number of RSUs
Outstanding Weighted-Average
Grant Date
Fair Value
Per Share

(In millions, except per share data)
Balance as of October 30, 2022
175   $ 23.85  
Granted 124   $ 51.98  
Vested ( 74 ) $ 26.25  
Forfeited ( 7 ) $ 30.79  
Balance as of October 29, 2023
218   $ 38.92  
Assumed in VMware Merger
46   $ 96.85  
Granted 81   $ 115.58  
Vested ( 107 ) $ 54.34  
Forfeited ( 25 ) $ 88.62  
Balance as of November 3, 2024
213   $ 66.44  
Granted 120   $ 192.37  
Vested ( 87 ) $ 71.63  
Forfeited ( 17 ) $ 108.28  
Balance as of November 2, 2025
229   $ 127.63  

The aggregate fair value of RSUs that vested in fiscal years 2025, 2024 and 2023 was $ 21,721  million, $ 14,914  million and $ 5,423 million, respectively, which represented the market value of our common stock on the date that the RSUs vested. The number of RSUs vested included shares of common stock that we withheld for settlement of employees’ tax obligations due upon the vesting of RSUs.

12. Income Taxes
The components of income before income taxes by U.S. and foreign jurisdictions were as follows:

  Fiscal Year
2025 2024 2023

(In millions)
Domestic income (loss)
$ 2,507   $ ( 4,851 ) $ ( 63 )
Foreign income 20,222   14,767   15,160  
Income from continuing operations before income taxes
$ 22,729   $ 9,916   $ 15,097  

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The components of the provision for (benefit from) income taxes were as follows:

  Fiscal Year
2025 2024 2023

(In millions)
Current tax provision:
     
Federal $ 660   $ 1,030   $ 952  
State 185   52   23  
Foreign 791   701   541  
 Total 1,636   1,783   1,516  
Deferred tax provision (benefit):
     
Federal ( 1,844 ) 1,855   ( 499 )
State ( 257 ) ( 70 ) ( 31 )
Foreign 68   180   29  
Total ( 2,033 ) 1,965   ( 501 )
Total provision for (benefit from) income taxes
$ ( 397 ) $ 3,748   $ 1,015  

The following is a reconciliation of our effective tax rate to the statutory federal tax rate:

  Fiscal Year
2025 2024 2023
Statutory tax rate 21.0   % 21.0   % 21.0   %
State, net of federal benefit ( 0.2 ) ( 0.1 ) —  
Foreign income taxed at different rates ( 14.9 ) ( 22.4 ) ( 17.3 )
Deemed inclusion of foreign earnings 7.1   16.3   9.9  
Change in valuation allowance
5.8   —   —  
Impact of non-recurring intra-group transfer of certain IP rights
—   39.6   —  
Releases and settlements from statutes expirations
( 7.9 ) —   ( 2.2 )
Tax contingency interest accrual
0.3   1.8   0.3  
Excess tax benefits from stock-based compensation ( 9.6 ) ( 13.1 ) ( 3.4 )
Research and development credit ( 3.8 ) ( 6.0 ) ( 1.8 )
Other, net 0.5   0.7   0.2  
Effective tax rate on income before income taxes ( 1.7 ) % 37.8   % 6.7   %

On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, which allows for the immediate expensing of domestic research and development costs and certain capital expenditures, and changes the United States taxation of profits derived from foreign operations. As a result, it is no longer more-likely-than-not that we are able to utilize our federal corporate alternative minimum tax (“CAMT”) credits, and we established a $ 1,321 million valuation allowance against our CAMT credit carryforwards and CAMT credits generated in the current fiscal year. Our policy is to not consider the impact of future years’ CAMT in our valuation allowance assessment for regular deferred tax assets. Most of the provisions are effective beginning in our fiscal years ending November 1, 2026 or October 31, 2027, with the exception of immediate expensing of qualifying property being effective in fiscal year 2025.
The benefit from income taxes in fiscal year 2025 was primarily due to the recognition of uncertain tax benefits from expiration of statutes of limitations and audit settlements, and excess tax benefits from stock-based awards, partially offset by income from operations and a valuation allowance against our CAMT credits.
The increase in provision for income taxes in fiscal year 2024 compared to fiscal year 2023 was primarily due to the impact of a non-recurring intra-group transfer of certain IP rights to the United States as a result of supply chain realignment and the resulting shift in jurisdictional mix of income, partially offset by an increase in excess tax benefits from stock-based awards.
We derive the effective tax rate benefit attributed to foreign income taxed at different rates primarily from our operations in Singapore and Malaysia. Our tax incentives from the Singapore Economic Development Board provide that any qualifying income earned in Singapore is subject to tax incentives or reduced rates of Singapore income tax, subject to our compliance with the conditions specified in these incentives and legislative developments. These Singapore tax incentives are
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scheduled to expire through November 2030. We have also obtained a tax holiday on our qualifying income in Malaysia, which is scheduled to expire in fiscal year 2028. The tax holiday that we negotiated in Malaysia is also subject to our compliance with various operating and other conditions. Before taking into consideration the effects of the U.S. Tax Cuts and Jobs Act and other indirect tax impacts, the effect of these tax incentives and tax holiday was to decrease the provision for income taxes by approximately $ 2,709 million, $ 2,261 million and $ 2,104 million for fiscal years 2025, 2024 and 2023, respectively.
Significant components of our deferred tax assets and liabilities consisted of the following:

November 2,
2025 November 3,
2024

(In millions)
Deferred income tax assets:    
Net operating loss, credits and other carryforwards
$ 4,261   $ 2,905  
Capitalized research and development
3,581   2,459  
Deferred revenue 490   776  
Employee stock awards 474   291  
Depreciation and amortization
80   81  
Other deferred income tax assets 519   672  
Gross deferred income tax assets 9,405   7,184  
Less: valuation allowance ( 3,983 ) ( 2,218 )
Deferred income tax assets 5,422   4,966  
Deferred income tax liabilities:
Depreciation and amortization 7,157   8,772  
Unamortized debt discount and issuance costs
359   420  
Foreign earnings not indefinitely reinvested 131   105  
Other deferred income tax liabilities 286   210  
Deferred income tax liabilities 7,933   9,507  

Net deferred income tax liabilities
$ ( 2,511 ) $ ( 4,541 )

The valuation allowance disclosed in the table above relates to all CAMT credit carryforwards and substantially all U.S. state and foreign net operating loss carryforwards and research and development tax credits that may not be realized.
We continue to indefinitely reinvest $ 1,606 million of certain accumulated foreign earnings. The unrecognized deferred income tax liability related to these earnings is estimated to be $ 169  million. All other current and future earnings of all our foreign subsidiaries are not considered permanently reinvested.
As of November 2, 2025, we had tax effected U.S. state net operating loss carryforwards of $ 182 million and foreign net operating loss carryforwards of $ 151 million, all of which expire in various years beginning in fiscal year ended November 1, 2026 ("fiscal year 2026"). We had $ 2,504 million of state research and development tax credits which begin to expire in fiscal year 2026. We had $ 1,321 million of CAMT credits which do not expire under the current law.
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Uncertain Tax Positions
The following table reconciles the beginning and ending balance of gross unrecognized tax benefits:

Fiscal Year
2025 2024 2023

(In millions)
Beginning balance $ 5,843   $ 4,655   $ 5,117  
Lapses of statutes of limitations ( 3,162 ) ( 39 ) ( 634 )
Increases in balances related to tax positions taken during prior periods (including those related to acquisitions made during the year)
184   844   26  
Decreases in balances related to tax positions taken during prior periods ( 10 ) ( 9 ) ( 13 )
Increases in balances related to tax positions taken during current period
371   447   170  
Decreases in balances related to settlements with taxing authorities ( 52 ) ( 55 ) ( 11 )
Ending balance $ 3,174   $ 5,843   $ 4,655